Mission Accomplished: Spanish Bond Yields Converge To Treasuries

Tyler Durden's picture

Thanks to more jawboning promises of QE from Draghi this morning, peripheral bond yields in Europe have collapsed once again. Any minute now, Spain will be a lower-yielding bond than the US... and at this pace, you will have to pay Spain to lend it money within a few months... we are sure someone has figured out how entirely useless asset-purchases would be at these levels.. but for now, fight the fed in the US (they remind us that tapering is not tightening remember) but don't fight the promise of the ECB...



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Pladizow's picture

Anybody know of a euro bond short ETF?

Pladizow's picture

Isnt that the S&P 500?

Ive been looking to short European Sovereign debt and cant find an ETF.

Got several for the US and a couple for Japan, but none for any European nation?


zaphod's picture

This doesn't show how f*cked the banking system is today, I don't know what does.

Promises to print more money and devalue the worth of future Euros causes the price of future Euros (spanish debt) to rise. This is absurd.

wallstreetaposteriori's picture

Short the European banks.  they are the ones holding all the paper while they wait for EU QE... Suckas

Cthonic's picture

recall the arbitrary limitations on shorting emplaced during the last trainwreck...

eucalyptus's picture

maybe short wisdomtree etf: EU

LawsofPhysics's picture

people choosing "sides" for war.


(even the oligarchs-  but most will be well positioned either way)


PlusTic's picture

now that's funny...what a world of fraud...can make any fat/ugly broad good-lookin

falak pema's picture

Well if Draghi's jawboning puts the fear of God up the glory holes of HF speculators thats "mission accomplished" in the short term.

Why the blazes should the world Oligarchy casino continue to make its gravy, fed and bred on ZIRP, at the expense of the sovereign bonds; aka the blood of innocents ? 

Its not as if these scum bag HFs are anything else except the expression of the cancerous, shadow banked, financialised world. 

As for the longer term no jawboning can convert debt into asset whatever the ECB might say. 

OT/ But on the spanish front. How the catholic church rewrites History in Cordoba : All mention of that original Omeyyad Mosque, treasure of that age, has now been effaced by the Diocese in charge of it.

It is officially referred to as the "Cathedral" of Cordoba! 

On a similar basis the Saint Sophie of Istanbul could be named as a Mosque and we could conveniently forget it was the greatest cathedral of the Orthodox church in the past. When Prelates and Mollahs decide on History its time History bites back and makes their saintly Cojones into "pulp fiction". 

A Cordoue, l'évêché réécrit l'histoire de la Mezquita

Ghordius's picture

I thought that the whole construction is referred to as the Mezquita of Cordoba, and the church inside it as the Cathedral of Cordoba

falak pema's picture

yep, but apparently the word Mezquita has "vanished" from all official documents. The whole complex was officially known as a Cathedral-Mosque to respect both traditions; not anymore. 

wallstreetaposteriori's picture

I really cannot wait for risk to be repriced....WTF is going on anymore... I feel like everyone took stupid pills to forget the reality of their BS fishbowel worlds....  Take a look around... how many jackasses do you see that are going to own that Tesla they keep talking about...

machineh's picture

Surely there's an arbitrage here.

That is, buy USTs, sell EspTs ... and let nature take its course.


Kirk2NCC1701's picture

ALL Bonds are Bondage.  Bondage to a private cartel of bankers, who are allowed to conjure currency out of thin air, and loan it to the nation at interest.  With said interest translating into ever increasing taxes, licenses, fees and penalties.

As long as countries do not issue their own Asset-backed currency, it is all one giant MFing Ponzi, and the sheeple are willingly being treated like they deserve to:  sheep.  And you know what they do to sheep!?

FEUDALISM 2.0.  Bitchez!

EscapeKey's picture

absolutely ridiculous

Ghordius's picture

based on what metrics? Debt-to-GDP?

Dr. Engali's picture

Now that is completely screwed up. There are so many distortions in these markets that if they ever let go shit's going to fly everywhere.



disabledvet's picture

"The circle is now complete. Once I was the learner now I am the master."

(In high, shrill, Pinnochio voice) "only a master of evil, Darth!"

These rates could clearly head to Japanese levels as "Madrid becomes the New Tokyo."

Hard to say if we're looking at some type of default or not. Certainly this is very pricy debt. The rate differentials say a lot more about problems in the USA than Spain though...yes, yes?

khakuda's picture

The answer is C.  They are BOTH fake.

Yen Cross's picture

  What's the unemployment rate in Spain again?  Oh, and Spanish loan defaults deserve honorable mention. I'm sure things have drastically improved over the last 60-90 days though. caugh-caugh

  Spanish Bad Loans Jump To New Record As Banks Come Clean Over Mortgage Defaults | Zero Hedge

  Spanish Loan Defaults Climb to Record 13.1 Percent in November - Bloomberg

Yancey Ward's picture

So you have to ask yourself- is it that Spain is a better credit than it seems on its face, or is the US a worse one?  I am simply flabbergasted that Spain can borrow on terms equal the US at 5 years out.

medium giraffe's picture

The acres of new developments that are standing empty and crumbling are testament to the misguided lunacy of the Spanish govt, aided by the EU.  I'm not sure how it's possible to see any value in Spain at all.  It will more than likely default, so who the hell wants to hold Spanish debt (apart from Mario), even without the premium.  They even had to raid their own Social Security to buy their own bonds a couple of years back for the sake of appearances!


toros's picture

What borrowing?  This is printing....

Thalamus's picture

The Fed is behind it all, with the Fed being owned by the money masters mostly in Europe. They still can't figure out how to diffuse their about to explode creation so they put out spot fires in the mean time.

ableman28's picture

The acid test, if you want a real world experience, is to buy an issue and then try to put it up for collateral here in the US.  The discount offered against par will be breath taking.

headhunt's picture

Someone must have looked at the amount the Fed has given and guarantees in Spain.

DB Cooper's picture

Yellen and Drahgi - Chief Riggers

moriarty's picture

“Most impressive” as the Lord Vader would have said.