European Bonds Plunge Most In 3 Months, Stocks Slump

Tyler Durden's picture

Portugal suffered the most - with its bond spreads now a huge 45bps wider on the week. It seems between the ever-increasing vol in Japan, a rapidly fading JPY carry funding mechanism, and lack of fresh meat from Draghi, Italian and Spanish bonds and stocks are losing their 'greater fool' bid. Sovereigns are seeing their worst day since February; stocks among their worst days since Feb - with several Spanish and Italian banks halted limit-down (as ECB's QE-like collateralization was not eased); and EUR is strengthening against the USD as risk-flows are repatriated. Italian and Spanish stocks are now at 6 week lows, and Spanish, Italian, and Portuguese credit spreads at six-week highs. European financial and corporate credit are now wider (worse) on the year and equities are catching down. And the ultimate 'greater fool' momentum trade - GGBs - is fading - now down 9.5% in the last week...



Bonds and Stocks were ugly...

Credit leading the way...


as Credit is red YTD and stocks close...


Charts: Bloomberg

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rubearish10's picture

OT: Hello USDJPY vs ES correlation, Hello???

Yancey Ward's picture

Can't imagine people selling the debt of high quality debtors like Greece, Italy, Portugal, and Spain.  Must be morons.

rubearish10's picture

Hello 50 DMA risk,hello?

SheepDog-One's picture

I think they had a plan, thought it was flawless (rubbing hands together like cartoon villain) but now realize no ones buying it and are out of time and no way back. 

JJ McApe's picture

lol just saw it. dax took a nice 1.2% nosedive in the last hour. hahaha

bring it on ECB i say.

Its Only Rock N Roll's picture

There is about to be a mad scramble in US markets

BandGap's picture

Like people on the ass end of the Titanic just before it slips beneath the waves.

rubearish10's picture

Yes, rising periphreal Euro debt and currency speaks voumes of King Dollar, A?

...out of space's picture

what a nice boner on €

rubearish10's picture

Alright, who leaked tomorrow's UE number?

Dr. Engali's picture

It's quiet out there....too quiet...somethings up.

rubearish10's picture

Your quotes must be delayed.

Non Passaran's picture

This is looking gooooood.
Next we need a PIIGS bank to go down and riots in France.
May we have an interesting European vacation season!

Yen Cross's picture

  The currency markets are full on manic. The rats are looking for a new piece of cheeze to jump on. Now the equity markets are leaking lower. It would be sweet justice if Japanistan took the equity markets from 'Chair Satans' control, and straight into the gates of hell!

assistedliving's picture

lets turn back to USA charts to really see wassup

does it really matter?

Handful of Dust's picture

it's those evil speculators......