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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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Thu, 06/06/2013 - 11:46 | 3630043 BandGap
BandGap's picture

Weeeeeee!

Thu, 06/06/2013 - 11:52 | 3630070 rubearish10
rubearish10's picture

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

Thu, 06/06/2013 - 11:52 | 3630072 Yancey Ward
Yancey Ward's picture

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

Thu, 06/06/2013 - 11:53 | 3630084 rubearish10
rubearish10's picture

Hello 50 DMA risk,hello?

Thu, 06/06/2013 - 11:54 | 3630089 SheepDog-One
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. 

Thu, 06/06/2013 - 11:54 | 3630091 JJ McApe
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.

Thu, 06/06/2013 - 11:54 | 3630093 Its Only Rock N Roll
Its Only Rock N Roll's picture

There is about to be a mad scramble in US markets

Thu, 06/06/2013 - 11:56 | 3630101 BandGap
BandGap's picture

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

Thu, 06/06/2013 - 11:54 | 3630094 PiltdownMan
PiltdownMan's picture

Draghi flaps his wings, bonds fall and US mortgage rates rise. http://confoundedinterest.wordpress.com/2013/06/06/draghi-flaps-his-wing...

Thu, 06/06/2013 - 11:55 | 3630097 rubearish10
rubearish10's picture

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

Thu, 06/06/2013 - 11:56 | 3630105 ...out of space
...out of space's picture

what a nice boner on €

Thu, 06/06/2013 - 11:58 | 3630113 rubearish10
rubearish10's picture

Alright, who leaked tomorrow's UE number?

Thu, 06/06/2013 - 12:02 | 3630124 Dr. Engali
Dr. Engali's picture

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

Thu, 06/06/2013 - 12:05 | 3630146 rubearish10
rubearish10's picture

Your quotes must be delayed.

Thu, 06/06/2013 - 12:07 | 3630161 Non Passaran
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!

Thu, 06/06/2013 - 12:17 | 3630219 Yen Cross
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!

Thu, 06/06/2013 - 13:02 | 3630466 assistedliving
assistedliving's picture

lets turn back to USA charts to really see wassup

http://www.youtube.com/watch?v=djItGln6IxY

does it really matter?

Thu, 06/06/2013 - 13:07 | 3630492 Handful of Dust
Handful of Dust's picture

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

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