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Irish Bond Yields Lower Than US Treasuries For First Time Since 2007
"Mission Accomplished" - We are sure in the world of escape velocities, terminal rates, risk premia, and endless free-money this all makes perfect sense...
Irish 10Y bond yields are trading at 2.60% - below the US Treasury yield for the first time since 2007...
and
- *SPANISH FIVE-YEAR NOTE YIELD DROPS TO RECORD 1.485%
Chart: Bloomberg
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:)
Truly unfuckinbelievable
*POP*
Cypher: You know, I know this steak doesn't exist. I know that when I put it in my mouth, the Matrix is telling my brain that it is juicy and delicious. After nine years, you know what I realize?
[Takes a bite of steak]
Cypher: Ignorance is bliss.
all hail deflation!
https://www.youtube.com/watch?v=LAf0QnLFS7Q
Begorra, I'm on a pint of the black to celebrate, so i am,
fckn hilarious:)
I look at that graph while listening to "Yakety Sax" (ie Benny Hill music)
https://www.youtube.com/watch?v=tNBL5OMeuno
I guess "Irish Bonds Yield 100bp over Bunds" is not such a sexy headline.
If the ECB's repoing, ya gotta dance.
Long Spanish RMBS, yay!
The debt of most Western countries can never be paid off. The US has debt and unfunded liabilities of at least $147 trillion ($1,260,000 per taxpayer) and rising at at least $8 trillion a year ($70,000 per taxpayer per year). These liabilities will never be paid off. Yet bond yields are falling all over the Western world instead of rising due to huge risk of defaults. This is truly a Bizarro world.
Usquebaugh for the rounds,
May we all sit to cheer.
And remember one another,
those things that we hold dear.
As long as Draghi and his ECB are at the helm, it makes no sense for markets to trade various € denominated bonds at different yields. As long as the ECB has the PIIGS' backs, German Bunds are no more safe than Irish bonds. If Germany ever gets called to back up this European pile of poo, they'll be fucked as badly as the Greeks.
You have to hand it to the central planners of the western world. They are completely bankrupt yet the cost of money for them is basically zero. People are falling all over themselves to buy their debt hoping to front run the central banks. Fucking amazing.
The answer to low yields is leverage. Which is entirely risk-free.
Way back when I first joined ZH, somebody, I don't remember who, made a comment that went roughly like this: "They control the money supply, guys. They can keep this shit going for a long, LONG time."
No truer words were ever written. We have DECADES of this left in front of us. Not days, weeks or months.
Many would agree with you. I half agree with you. Without outside forces working against them... they could continue this for decades, theoretically forever. However, what they are doing will have consequences as the reach for yeild goes higher and higher and reaches beyond soveriegn bonds and begins to blow bubbles in private sources of credit. Explosions outside of their control will set off the nuclear bomb they've buried.
Draghi and Yellen are shooting their own feet. When this reverses (and it will, risk off), safe haven trade will drive US and German yields to all-time lows - Japan style.
No, these bureaucrats are not shooting at their own feet. They're shooting at my foot and millions of other middle class, tax paying, non-debt ridden households. It's my foot they're fucking up. Draghi's foot is safe in the Bahamas - or wherever he and his investment banker son park their millions.
Is that a train I see coming?
No. That's the light, at the end of the cliff.
or the light at the end of the tunnel that's just approaching by itself...
Ghost Train or Night Train Express, pick your poison.
no thats the great big beautiful tomorrow.
makes perfect sense. how many aircraft carriers does ireland have again? or the entire eu? the demise of the petrodollar will be met with massive military intervention, gop/crusade=style. you dont think they wont go kicking and screaming--sending your boys to fight for thier cause?
What could possibly go wrong?
Time to go ride my unicorn in a field of poppies.
so, assuming rational actors, that which remains, not matter how far fetched...
the world is stabilizing.
:)
p.s. i will confess that i do not know how much of this 'stabilization' is due to the leveling of the playing filed in the world of quants as math studied over time is a diminishing curve of advantage. this seems to be identified by the media and the fed as 'complacency'. i call it algo-fragility, the reliance of the whole world's well being based upon the next upgrade in an equation.