European Bonds Plunge Most In 8 Months, Stocks Worst Week In 2 Months

Tyler Durden's picture


European stocks fell for a second day-in-a-row (notable in its own right as not having happened for 5 weeks) for the biggest drop in 6 weeks capping the worst week in 2 months. Spain and Italy saw their stock indices drop 3.6% on the week. But it was European banks and peripheral sovereign bonds that saw the most damage. As JPY-funded leveraged momo come rapidly undone, Italian and Spanish bond spreads saw their biggest 2-day drop in 8 months to end back at 5-week highs. EURUSD ends the week up 0.6% (and the JPY +2.2%) as repatriation escalates. Europe's VIX is holding around 18.% (up 2.5 vols on the week).



As stocks play catch-down to credit...


which leaves the last 2 days for peripheral bonds as the worst in 8 months... (back above 300bps for the first time in six weeks)


Charts: Bloomberg

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Fri, 05/24/2013 - 11:49 | 3596056 viahj
Fri, 05/24/2013 - 12:02 | 3596086 cifo
cifo's picture

"Worst Week In 2 Months"

Wake me up when it's worst week in 30 years.


Fri, 05/24/2013 - 12:03 | 3596092 knukles
knukles's picture

Lemme see
Gold took a pistachio-ing
Commodities taking a shellacking
Credit spreads widening

What could go wrong?

Oh yeah, equities starting to have some bad days

Sound familiar?
Hint hint, take a look back at 2007

Depositors cutting down balances to insured limits, rehypothecation coming under fire (kinda)

What could go wrong?

Bullion banks scrambling to find physical
Fed credit extensions to foreign banks off the charts.

What could go wrong?

Fri, 05/24/2013 - 12:16 | 3596118 oddjob
oddjob's picture

What could go wrong?

Barrick and Silver Wheaton halted, this could be good.

Fri, 05/24/2013 - 12:50 | 3596200 Panafrican Funk...
Panafrican Funktron Robot's picture

Gee, here I was thinking that bonds and stocks are negatively correlated.  Turns out, when you pump both, both eventually have to revert to the mean (at least in real terms).  

Fri, 05/24/2013 - 11:51 | 3596064 buzzsaw99
buzzsaw99's picture

it's okay because those funds have sloshed across the pond into us equities and treasurys so they're safe now. [/sarc.]

Fri, 05/24/2013 - 11:57 | 3596075 cnmcdee
cnmcdee's picture

A dead horse has a flinch.. that is what  the European equity market is - who juiced the carcass with a shot of electricity?

Fri, 05/24/2013 - 12:03 | 3596088 adr
adr's picture

It's ok, they can revive the dead market with a vial of Bernanke's blood.



In reference to the latest Star Trek film. Not bad, not great. Kind of a lot of fluff without any real filler. Just like the times we are living in.

Fri, 05/24/2013 - 12:20 | 3596133 knukles
knukles's picture

Not bad?
Dude, it's the Anti-Christ of entertainment, clearly trumpeting the current Big Gubamnit meme about the Endless War on Terrorism taking place still, in the 2300's or whenever, the sources of the Federation (whose flag is a modification of the UN standard) all brought to bear against the dark forces attempting to "subvert" the powers that be.  Who, by the way, claim goodness and freedom for the universe, just like...
Oh, never the fuck mind...

That's a pure classic example of the Hollywood Washington NWO collusion mind washing, managing perceptions to mold the public's thinking that all is well and as is, shall always be.

All Hail Leadership!
Only thing they left out was pledging fealty to the War on Terror.

           Be careful with your thoughts, citizen

Fri, 05/24/2013 - 12:03 | 3596089 disabledvet
disabledvet's picture

Treasuies sneeze...the world gets bubonic plague.

Fri, 05/24/2013 - 12:03 | 3596090 The Thunder Child
The Thunder Child's picture


World Wide March Against Monsanto

TOMORROW 2pm Everywhere

Get out and let your voices be heard, help to stop GMO and the takeover of our food supply!

Monsanto can be stopped, the first victores have all ready been won

Fri, 05/24/2013 - 12:03 | 3596091 Yen Cross
Yen Cross's picture

    GOOD NEWS: No POMO Monday or Tuesday next week.  :-)


Fri, 05/24/2013 - 12:15 | 3596115 slaughterer
slaughterer's picture

You need your meds: Markets are closed on Monday, and there is a POMO scheduled for Tuesday.  

Fri, 05/24/2013 - 14:21 | 3596139 Yen Cross
Yen Cross's picture

               My bad I know. I just spent 5 minutes updating my post, and you replied.(service denied) $1.25-1.75 on Tues.

  • $2.75-3.50 Wed.

  • $1.25-1.75 Thu.

  • $4.25-5.25 Fri. (Think I'll get drunk and watch from the sidelines)

   For the dikwad that junked me. [IMG][/IMG]

Fri, 05/24/2013 - 12:06 | 3596098 williambanzai7
williambanzai7's picture

The continent is led by kleptofascismos who think market momo and technical charts are a better economic barometer than simply observing what is happening on the street. This won't last much longer, so I am told...

Fri, 05/24/2013 - 14:06 | 3596433 Ungaro
Ungaro's picture

The ECB obviously needs to get out their Abezooka.

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