• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

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

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 01/14/2014 - 14:26 | 4331152 Belrev
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.

Tue, 01/14/2014 - 14:39 | 4331178 NOTaREALmerican
NOTaREALmerican's picture

Re:  jews head and run central banks

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

Tue, 01/14/2014 - 15:31 | 4331330 max2205
max2205's picture

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

Tue, 01/14/2014 - 16:56 | 4331690 kaiserhoff
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.

Tue, 01/14/2014 - 14:38 | 4331179 tempo
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.

Tue, 01/14/2014 - 15:20 | 4331283 forwardho
forwardho's picture

The ashes of 6 million might disagree with your logic.

Tue, 01/14/2014 - 14:24 | 4331154 LawsofPhysics
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...

Tue, 01/14/2014 - 14:29 | 4331158 Yen Cross
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...

Tue, 01/14/2014 - 15:19 | 4331278 teolawki
teolawki's picture

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

Tue, 01/14/2014 - 14:34 | 4331170 101 years and c...
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).

Tue, 01/14/2014 - 14:39 | 4331177 frankTHE COIN
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.

Tue, 01/14/2014 - 14:44 | 4331193 Dr. Engali
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.

Tue, 01/14/2014 - 14:59 | 4331231 NOTaREALmerican
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.

Tue, 01/14/2014 - 15:15 | 4331267 forwardho
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.

Tue, 01/14/2014 - 14:50 | 4331207 hugovanderbubble
hugovanderbubble's picture

Thanks Tyler/ and Jamie

Tue, 01/14/2014 - 16:37 | 4331600 Spungo
Spungo's picture

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

Tue, 01/14/2014 - 17:57 | 4331925 Ghordius
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

Tue, 01/14/2014 - 19:09 | 4332218 falak pema
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."

Tue, 01/14/2014 - 18:00 | 4331940 Ghordius
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

Wed, 01/15/2014 - 06:45 | 4333510 mvsjcl
mvsjcl's picture


Tue, 01/14/2014 - 21:00 | 4332545 The Shodge
The Shodge's picture

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

Do NOT follow this link or you will be banned from the site!