Europe Closes Red For 2013, Italian Yields At 7-Week Highs

Tyler Durden's picture


EuroStoxx (Europe's Dow) closed today -1% for 2013. France, Germany, and Spain are all lower on the year now. Italy, following ENI's CEO fraud, collapsed almost 3% from the US day-session open, leaving it up less than 1% for the year. Just as we argued, credit markets have been warning that all is not well and today's afternoon free-fall begins the catch-down. European sovereign bonds are no better with Belgian spreads the worst +13bps on the year. Italian bond yields are the highest in seven weeks (with spreads back above 300bps again today) as both Italy and Spain approach unchanged for the year. Europe's VIX closed at its highest in almost 3 months (aside from the 12/28 spike) as Swiss 2Y rates edge ever closer to negative once again (and 3-month EUR-USD basis swaps dropped the most in seven months). EURUSD broke back below 1.3400, its lowest in 10 days. Cue 'Cleanest Dirty Shirt' talk from US managers in 3...2...1...

EURUSD at 10-day lows...


European stocks broadly negative YTD...


with Italy collapsing almost 9% in the last week...


and European Sovereigns now at the year's worst levels...


as Europe's VIX blows to 3 month highs...


and remember basis-swaps? Well, they are back, having plunged the most in seven months in the last week following LTRO repayment...


Charts: Bloomberg

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Thu, 02/07/2013 - 12:42 | 3223239 LongSoupLine
LongSoupLine's picture

Ha Ha...fuck you Bernanke and Draghi you fiat bloated dick swallowers.


I hope someone drops a gold brick on your fucking balls you shit eating assholes.

Thu, 02/07/2013 - 12:46 | 3223260 Say What Again
Say What Again's picture

Hey Bernank (and GS),

Is it OK to start selling ES now?

Thu, 02/07/2013 - 13:03 | 3223294 otto skorzeny
otto skorzeny's picture

this morning the magic 8 ball says "Fuck Yeah!"

Thu, 02/07/2013 - 13:47 | 3223423 Stock Tips Inve...
Stock Tips Investment's picture

The situation may be complicated in Europe. The bond market (in general) is correcting. This can cause a stampede and accelerating the crisis. Surely we will see the Fed, the ECB and the BOJ very active in the coming weeks.

Thu, 02/07/2013 - 13:11 | 3223316 Groundhog Day
Groundhog Day's picture

Where is Corzine?  he loves buying Italian Bonds when they are down

Thu, 02/07/2013 - 12:44 | 3223250 Temporalist
Temporalist's picture

Get Krugman on the Rat Phone stat!

Thu, 02/07/2013 - 12:44 | 3223251 Say What Again
Say What Again's picture

Looks like ES 1495 will not hold

Thu, 02/07/2013 - 12:44 | 3223252 knukles
knukles's picture

Good thing it's all fixed.
Buy now, beat the rush
Never on sale this cheap again.
Not available in stores.

Going out of business sale

Thu, 02/07/2013 - 12:46 | 3223262 fonzannoon
fonzannoon's picture

Longsoupline I am a fan of your rants but this stinks of the Bernak. This is why the "great rotation" is a bunch of hot dogshit. Anytime....ANYTIME the tiniest whiff of fear that someone may actually sell a bond and buy a stock pops up the Bernak will cap this market in an instant and knock it back a few percent and  literally kick those sheep in the ass to make sure they go running back into that burning barn of treasuries.

ZIRP and QE 4eva.

Thu, 02/07/2013 - 12:47 | 3223269 Stoploss
Stoploss's picture

Contrary to popular ignernce, when da bond go up an da currency go up together, it is a sign of:



Thu, 02/07/2013 - 12:48 | 3223272 mayhem_korner
mayhem_korner's picture



More dry powder for Ben's printing presses. 

Thu, 02/07/2013 - 13:01 | 3223288 otto skorzeny
otto skorzeny's picture

at least with the big NE snowstorm this weekend the current shitty economy will have another boogeyman for a few quarters

Thu, 02/07/2013 - 13:45 | 3223414 Grand Supercycle
Grand Supercycle's picture

Wile E. Coyote sell off awaits...

SP500 daily chart choppy downtrend commencing.

Longs please be careful.

Thu, 02/07/2013 - 14:53 | 3223666 medium giraffe
medium giraffe's picture

S&M500 penis pump pushing flaccid instrument back above 1505. Ugh, get up there! VWAP! VWAP!


Thu, 02/07/2013 - 15:03 | 3223705 The worst trader
The worst trader's picture

start the rampathon! must close green


Thu, 02/07/2013 - 16:40 | 3224039 TraderTimm
TraderTimm's picture

BTC +9% Feb 2013

Keep printing you central banking idiots.

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