Swiss Rates Swing Back To Negative As European Credit Ignores Equity Bounce

Tyler Durden's picture

Better than expected German confidence and another Spanish auction 'success' was not enough to encourage anyone in the real world to step into European risk assets en masse. It seems good is no longer good; sovereign spreads leaked wider to unchanged on the week, corporate and financial credit spreads are far from the exuberance we see in European stocks; and Swiss 2Y rates pushed back into the negative (after a few days respite in the green) as last night's Open-Yended decision by the BoJ saw little risk-on follow-through. Europe's VIX has pushed higher from the middle of yesterday. Of note, perhaps is the opening gap down (catch down to credit) in stocks today that was bid - but credit did not follow. EURUSD is going out slightly lower at 1.33.

European credit is not as excited at all as European stocks...

 

and even though the media proclaims another Spanish auction a success - the late day action was notably weak as Spain widened 15bps off its tights...

 

but Italian and Spanish stocks recovered from some early weakness...

 

and Swiss 2Y rates shifted back negative once again...

 

Charts: Bloomberg

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ParkAveFlasher's picture

Nice little noon-time boner on gold.  I was thinking that PMs would take a hit after the weekend. 

I need more cowbell's picture

A 5 buck boner? Dude, you need to get out more often.

ParkAveFlasher's picture

Hey, when the mojo is under a suppression scheme, and when Jeffrey Christian is the local pimp, every little inch of wood set free by the morning light is a cause to pause, you dig?

Super Broccoli's picture

why would you want swiss bonds ? if europe crashes that tiny mountain-island won't survive ! what do they have ? a collapsing banking system and a bunch of milking cows ? where is the REAL ECONOMY ?

CH1's picture

where is the REAL ECONOMY ?

You really should go see a place before you make pronouncements about it.

Ar-Pharazôn's picture

you're a clueless idiot.

1. "where is the REAL ECONOMY"

cows. when SHTF i will drink my natural milk while you will be struggling for a glas of water.

2. "a collapsing banking system and a bunch of milking cows"

have you ever been 1 time in your life for 1 day in Switzerland? i m pretty sure no. come and see the infrastructure we built in this "tiny mountain-island" before making stupid assertions.

 

 

PUD's picture

SEC slaps sanctions on Egan-Jones founder

Confundido's picture

NEGATIVE RATES = CONFIDENCE IN THE BANKING SYSTEM = DEPOSITS NOT FALLING = CENTRAL BANKS IN CONTROL = NO HYPERINFLATION YET = GOLD IS A BARGAIN.

fuu's picture

Still waiting for 1564/oz by the end of January.

Confundido's picture

You will have that too....

disabledvet's picture

Still sticking with the "massive double dip Depression thesis" over their. That debt is FAR from cheap given all the technical damage.

topspinslicer's picture

I am so glad our leaders are taking care of us from cradle to grave with negative rates -- it's a fantastic help!!!!!

Bicycle Repairman's picture

No.escaping.the.ponzi.with.Swiss.Franc.bitchez.