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The Death Of The European Bond Market
As we recently noted, thanks to the overwhelming dominance of the BoJ, the Japanese government bond market is "for all intent and purpose" dead. As the chart below shows, that is the lesson that Europe has learned also. Since the Greek bailout, bond trading volumes (and thus liquidity) has collapsed to practically zero. Of course, this is ignored by the mainstream media, instead focusing on the 'low' yields of that nation's debt as indicative of 'recovery' around the corner and a market that knows better. Instead it is simply a measure of the domestic banks meager pricing at the margin of a bond market that reflects nothing but a shell of its former self. The pattern is similar (though not so terrible) for Spanish and Italian debt as the entire European bond market devolves into OMT-driven farce.
(h/t @fmirw)
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We should be depressed then.
So it becomes like zombies. Still wandering around aimlessly.
Thus it is tuff to kill something that is already dead.
The Greatest Depression started five years ago. Can you feel Blackest Friday breathing down your neck?
I think it's Blackest Friday the 13th. The audience knows Jason is out there, but the kids are still going for a swim and drinking beer and so far so good.
THe patient died in 2008 and the Fed did what they could but in effect all they were able to do was to pull the curtain around it to offer it some privacy from prying eyes. The patient is still dead but they continue to try to hit it with the paddles every month.
Maybe we should call this the Weekend At Bernies economy.
Ben hasn't figured out a way to buy them yet ?
Volume in the stock market is dead too. Take a look at today's, El Stinko. If it weren't for the Chairsatan, the markets would have died a long time ago.
In 2008 we went over the cliff, QE has deepened the hole we fell into and insured the crash will be worse and now the bond market is saying the ground is getting close.
You're missing the point. It wasn't a global recession. It wasn't a global depression. It was the start of the global collapse, it's the only explanation for 5+ years of QE.
We're chest high in liquidity and it does not seem to be working. Take the patient off of life support already, I'm ready!
Over.
I beg to differ. Nobody will truly be ready for what will come.
Seems to me some people are ready. Amazon tribes, reindeer hurders in Siberia. Still trying to think if any American's will be truly ready.
u.s equities of course are on pace now to wipe out yesterdays losses at the open.
who cares about a bad china pmi number, that only matters when its positive so cramer can tell us how the market being up is justified by china slowly getting better.
also, european markets r in the green now, i guess they r secretly doing qe there as well.
i hope they all suffer badly.
We can't solve problems by using the same kind of thinking we used when we created them.
Very simple. Any semblance of capitalism has left the building.
The Greek bond desk employees are going to have a bad xmas.
The title seems a little misleading, to me. Thought I was going to be looking at something about the "European" Bond market and it turns out it's about the Greek Bond market only.
Rocketing interest rates would solve this
And the death of main stream media.
Somalia comes to mind