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Portugal's Presidential Warning Spikes Yields To 8 Months Highs

Tyler Durden's picture





 

UPDATE: 5Y now +126bps (biggest jump in 19 months - snce the record highs) and rest of Europe is catching their systemic risk flu

Bond Spreads...

 

Stocks red in the periphery now...

 

Amid all the fun and games of the last few days that have seen everyone buy everything everywhere, we noted that the President of Portugal has 'warned' his politicians that if they don't find a coalition solution in a "very short period" then he will call early elections (throwing the Troika-imposed austerity program into shambles). It seems the 'time-bomb' was on a long fuse - thanks to Bernanke - and the reaction is very evident today as Portuguese bonds implode. Spreads are 76bps wider on the day, breaking above 600bps for the first time in 8 months. The 5Y yield on Portuguese debt is now at 7.5% (up 109bps today!) - and yet still they discuss the expectation of coming to market soon for new issuance. Europe remains very un-fixed and every now and again, when the domestic buyers are overwhelmed by some real liquidity, we get a glimpse.

 

 


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Fri, 07/12/2013 - 09:18 | Link to Comment NoDebt
NoDebt's picture

Ah, Europe in the summer!  Warm temperatures, riots in the streets, mass suicides and soaring bond yields.  Lovely.

Fri, 07/12/2013 - 09:26 | Link to Comment slaughterer
slaughterer's picture

Keep you eyes on the Bulltard, I mean, Bullard, at 1pm today, for the afternoon hockey-stick save for whatever losses (if any) the market creates today.

Fri, 07/12/2013 - 09:19 | Link to Comment SheepDog-One
SheepDog-One's picture

Come on Fed, send out Mr. Fixit! He can fix anything!

Fri, 07/12/2013 - 09:22 | Link to Comment CPL
CPL's picture

https://www.youtube.com/watch?feature=player_embedded&v=RjENfMdMSRI

 

Snowden live interview with world leaders Q&A

Fri, 07/12/2013 - 09:38 | Link to Comment Judge Crater
Judge Crater's picture

Before you leave, Larry Kudlow, do you think I should buy Portugese bonds on speculation?  You are saying, yes, the bonds are worth the risk. Got it. Thanks, Larry.  Now you can leave, don't slam the door on your way out.  

Fri, 07/12/2013 - 09:44 | Link to Comment disabledvet
disabledvet's picture

love it. stay long treasuries folks. "here we go again."

Fri, 07/12/2013 - 09:27 | Link to Comment Dr. Engali
Dr. Engali's picture

So buy Portuguese bonds and front run the ECB....got it.

Fri, 07/12/2013 - 09:28 | Link to Comment Bunga Bunga
Fri, 07/12/2013 - 09:28 | Link to Comment Devotional
Devotional's picture

I live in Portugal. Listen, the population does NOT care if the 10Y or 5Y goes to a 1000%. They want the socialist government back, even though they are solely responsible for this mess. People want their free stuff man ... welfare until we drop. Just today the public transport CARRIS unions demanded a 12 Euro a month subsidy for haircuts. NO, it ain't a joke. The unions are DEMANDING a 12 Euro subsidy for drivers' haircuts. This is the insanity of socialism that the world has embraced. A subsidy to cut their freakin' hair??? Are you kidding me???

Currently, even the communist parties have a 25% voting intention by the public. This is how these idiots think - If socialism does not give us free shit, then let there be MOOOOOOOOAAAAAAAR communism.

Fri, 07/12/2013 - 09:38 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Why not? Socialism was brought by EU and ECB in the first place. Even the banks and corrupt governments get subsidies for haircuts. 12 Euros is less than a fair share.

Fri, 07/12/2013 - 11:16 | Link to Comment morning
morning's picture

Direitos adquiridos, meu :D

Fri, 07/12/2013 - 11:38 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

I love your Avatar, morning. :)

Fri, 07/12/2013 - 11:48 | Link to Comment morning
morning's picture

Merely adequate for our home country :D

Fri, 07/12/2013 - 09:33 | Link to Comment timbo_em
timbo_em's picture

Just have some news agency quote an unnamed source at the ECB who re-affirms that the ECB has a very large tool box and/or hints at a 5-year LTRO.

 

Fri, 07/12/2013 - 09:35 | Link to Comment Judge Crater
Judge Crater's picture

No video of Snowden meeting with human rights activists, just a view of a guard or two by door to meeting.  More at:

http://www.guardian.co.uk/world/2013/jul/12/edward-snowden-to-meet-amnes...

 

Fri, 07/12/2013 - 09:47 | Link to Comment disabledvet
disabledvet's picture

Obama admin officials committing crimes against humanity...

Fri, 07/12/2013 - 09:55 | Link to Comment semperfi
semperfi's picture

The whole fucking U.S. Fed Govt is now just one big crime center.  Fuck them all ! 

Fri, 07/12/2013 - 09:40 | Link to Comment semperfi
semperfi's picture

Doesn't matter one bit.  MOAR printing!  Fixed.  Back to T. Martin trial circus and an EPA temp controlled beer....

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