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With Japan On Holiday, European Bonds Have Worst Day In Six Weeks
With Japan in the middle of Golden Week (and the UK on holiday), it is perhaps no surprise that European sovereign bonds sold off today. After an epic month, which saw Italian bond spreads collapse around 100bps, today's 10bps widening in spread is the worst in six weeks (and Spain was of similar magnitudes). Equity indices were mostly in the red today (though not dismally) with Italy and Spain down 0.3% and 0.6% resepectively. The Swiss OMX was the only index in the green today. Draghi's comments that "he stands ready to act again" sent EURUSD gapping down 50 pips hovering arund 1.3070 by the close; but it was EURJPY and AUDJPY that were diverging bearishly from risk assets in general.
Worst day for European bonds in six weeks... as the 250bps Italy floor holds...
Stocks weakened first but bonds went out at their worst levels of the day...
EUR gapped down on Draghi's comments...
Charts: Bloomberg
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When is the Global currency war holiday (re: collapse) scheduled this millennium?
<If we get one real soon we might be able to schedule another one this millennium. Who doesn't like twofers?>
in the mean time AAPL and GOOG are the index proxies du jour in order to keep the ponzi alive.....in the absence of "real" currency wars and manipulated econ reports
Strategy: when there is no market moving or gov't sposored economic reporting, go long AAPL, GOOG and draghi
ECB = European Central Bank
or
Experience
Complete
Bankruptcy
Makes no difference. The Japanese are going to do what they must do to survive. They got a clear message from the Chinese. Nothing is off the table. Now Japan is redrafting their constitution. Too bad they will end up in the same place as historically. They are still a country of people impatient with the stupidity of the rest of the world. Underneath that Japanese veneer of "patience" is a boiling anger. What's going to explode is Japanese nationalism and the guns to back it up this time. Shinto or Buddhism will never be able to help them control their ambitions or scale back their need to prove themselves to the world. Chinese should probably be careful. Not a good time for anyone to fuck with the Japanese people.
Indeed. Unfortunately they will still be an island that needs to import real resources in order to actually do, well, just about anything.
I don't wish to be too much of a doomer here but.........isn't it becoming pretty clear that all the G7 countries are following the Japanese down the (financial, social, governmental) tyranny rabbit hole?
<We have only begun to see, and experience, the true extent of the tyranny to come.>
'China's 'mic' has been running 'full throttle' for five years!'
I think this is a 3-legged Chihuahua yapping at a sleeping Pit Bull. Japan has crippled itself economically over decades and Fuku was just icing on the cake. They have what, 90% of their nuclear generation capability offline and are importing huge amounts of NG and other energy types to try and keep their manufacturing ability together and keep the lights on? All while dealing with 100's of thousands of displaced citizens, large swaths of farming and fishing grounds being irradiated, and huge costs in the works to clean up Fuku. If Japan doesn't keep it's focus on rebuilding itself internally and literally, cleaning up it's act, then better put on the Kamikaze gear and just push the stick forward...
I thought the hedge funds were borrowing yen at fuck all % and buying any PIIGS bond that moved.
"Golden" week...don't get me started......
Didn't EU Commi-ssars (etal) say just a couple of months ago that Europe was going to be peachy cute, as it was all gonna be like green-shootin 'n stuff like that?
like ... what changed???!!!
The idiots that be, are still buying this S/T trash though.
French 12-Month BTF Auction 0.018% 0.029% French 3-Month BTF Auction -0.004% -0.002% French 6-Month BTF Auction 0.001% 0.008%
The French and Germans are at at odds over austerity right now, so said bond yields should make for good entertainment over the next several weeks.
Draghi's right. It's all acting. ACTING!!
Short treasuries B*****Z!