Why Italian And Spanish Bonds Are Near Record Low Yields (In One Greater-Fool Chart)

Tyler Durden's picture

As global central bankers appear set on a game of inter-continental reach-around, the Japanese - printing press handle in hand - have taken the lead. For those wondering why EURJPY is so high and why, despite an endless stream of disappointingly near-record-bad macro and micro data in Spain and Italy, yields are near record lows... wonder no more. As Reuters' Jamie McGeever reports, the Japanese bought Spanish and Italian government debt at the fastest pace in 5 years. As Abe increases his militaristic presence in Asia, perhaps his 'promise' to buy any and all European peripheral debt is just the handshake he needs to pressure China (through its largest export market).


What do you do when the world is aware of the fact that domestic banks and pension funds are gorging on their own sovereign debt in a wildly systemic-risk-creating manner?


You call your friends in Asia...


We just wonder what the quid pro quo that Abe was promised for this? Remember, Draghi did says "whatever it takes!"


Source: @ReutersJamie

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Belrev's picture

Because as long as jews head and run central banks the end of the system is NOT near. Jews jump ship when it sinks. You will know when to load up on gold and ammo, when they put a goyim at the helm of Federal Reserve.

Until then you can stop checking for the doomsday news on this and other sites. Go work out or something.

NOTaREALmerican's picture

Re:  jews head and run central banks

Is this the lost tribe of Japan you are refering to here? 

max2205's picture

All that newly printed yen gas to go somewhere. ...up to a point

kaiserhoff's picture

A Trillion yen/per blown out Spanish condo in bum phuk no where?

In the new normal, that almost makes sense....

...must be happy hour somewhere.

tempo's picture

nflx has a problem. FCC overturned net neutrality rule which had allowed carriers to spread data usage over all subscribers. So high volume nflx movie viewers didn't have to pay for all the data stream cost they were using. As carriers adjust billing according to use, nflx users will see higher costs. nflx stock price peaked at near 380 and now is falling below the 100 day moving average at about 330.

forwardho's picture

The ashes of 6 million might disagree with your logic.

LawsofPhysics's picture

Last time I checked "Asia" was considerably more than just Japan.  Looking more and more like it's time to sacrafice Japan...

Yen Cross's picture

   How fitting that Japan with a 250% debt/gbp and ultra low bond yields through self monetization, is buying up toilet tissue from the weakest most insolvent parts of Europe.

  This story has an happy ending...The one where the pimp becomes the whore...

teolawki's picture

Perhaps they're in need of a scapegoat when it all goes tits up on them?

101 years and counting's picture

it makes sense.  mario "cant" print money so he's having the US and Japan print to pretend europe isnt totally fucked.  too bad for americans and japanese that are going to be left holding giant piles of this shit paper, which will be unloaded on them via their central gov't (in the US, the Treasury).

frankTHE COIN's picture

Since the Rule in Stocks against " Parking " doesn't apply here they will keep loading up. They will be in a Worse position to unwind when an External event happens.

Dr. Engali's picture

It all part of the world wild game of three card monte. Step right up ladies and gentlemen, keep your eyes on the cards and see if you can find the debt.....look over there....don't blink because you'll miss it.  The central bankers of the world will keep playing this game until it all comes tumbling down.

NOTaREALmerican's picture

Re; The central bankers of the world will keep playing this game until it all comes tumbling down.

What else could they do?   

Any little kids knows that once you start lying the only way to keep from getting spanked by mom is to make the lies bigger and better.

forwardho's picture


If you tell the truth, you are going to get a whipping.

If you lie... well at least there is a chance you might escape it.

Either way, eventually you get whats coming.

hugovanderbubble's picture

Thanks Tyler/ and Jamie

Spungo's picture

Print worthless yen at no cost.
Use it to buy bonds.
Collect interest.

Ghordius's picture

"What do you do when the world is aware of the fact that domestic banks and pension funds are gorging on their own sovereign debt in a wildly systemic-risk-creating manner?"

a slight exxageration, methinks, then before the introduction of the EUR those levels were quite higher. The phenomenon is being called Repatriation

falak pema's picture

you wonder where the business acumen of Zh has gone !

They ask the question as if capitalism's basic rules were now all greek to them. 

Looking into the abyss makes some people see what? 

The KGB had the same mindset when at a party beer fest :

"Why do you go so often to the lu,  tovarich?"

"I'm enjoying my beer n vodka, comrade. So I have to empty to fill up again."

"Are you sure you have no ULTERIEUR motive?"

"Yes, I do need to scratch my nuts, everytime time I hear you ask that same question on my way there."

Ghordius's picture

The Japanese are buying for a simple reason: diversification. A side effect of balance sheet expansion: you tend to expand one item first, and then you need more balance

The Shodge's picture

Ah, so the governments are eating each other's poo poo now in return for favors...