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Spain Bond Yields Spike Most In Over A Decade As "Referendum Risk" Spreads
As we warned earlier, there is the potential for broad risk premium re-pricing across European nations on the back of Scotland's independence referendum decision; and nowhere is that more evident in the last 2 days than in Spanish bonds. So-called "referendum risk" - in this case related to Catalan independence - has sent Spanish bond yields up over 17bps (over 8.1% - the biggest single day jump since before the EU was formed) and risk spreads are 12-15bps wider as the UK experience (with growing support for UKIP alongside faster economic growth) raises the issue that economic recovery alone may not be enough to reverse the rise in anti-elite, anti-establishment sentiment across Europe.
It's not just Scotland... (via Armstrong Economics)
Spanish bond yields are surging... as Catalan concerns build
with their biggest percentage jump since the EU was formed...
As we noted previously,
More broadly, "Referendum Risk" is one of the more powerful manifestations of what we have termed Vox Populi risk, the Crimea being a particularly powerful, if extreme, example. In particular, what happens in Scotland will be particularly closely watched in Spain, which is facing a referendum on Catalan independence.
Latent independence movements elsewhere, such as Belgium, could also be influenced by the outcome in Scotland. We regard the revival of local/national concerns, from Scotland to Spain and beyond, as part of continuing anti-establishment sentiment and a backlash against globalisation.
And the UK experience (with growing support for UKIP alongside faster economic growth) raises the issue that economic recovery alone may not be enough to reverse the rise in anti-elite, anti-establishment sentiment across Europe.
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the seperatist movements are allowed because a devided union is more easy to control.
That's also why a seperatist movement will be allowed in America in the comming decade as a devided country is more easy to be enslaved.
A house devided cannot spell.
Next up is... Texas
So Obozo better resign soon to save the Union.
Might not be a need. The Scottish may blow the whole thing up! Go Go Go Scotland FREEDOM!
There will be pain but it sooo worth it. http://www.youtube.com/watch?v=lEOOZDbMrgE
I thought the Basque's had first dibs on this stuff??
Hey the BRICS should get that currency formed and offer these breakoffs the new currency, that oughtta light the Rothchilds hair on fucking fire!!
When are you Flemish g going to do the same?
They'll never let 'em go. Why would you let a cash cow province out of the country? They're trying to get out because they're sick of paying everyone else's tab. Everyone else is definitely not sick of them picking up the tab.
True, Catalonya and Basque Country are the most industrial and economically stable parts of Spain, together with Navarra.
Catalonya has just noticed one of the worst corruption scandals of the history of Spain conducted by one of the more "respected" catalonyian independentism political figures (Jordi Pujol). Let's see how this affects "the process", as that shit could splash really high.
Basques are waiting and seeing. Basque nationalism is ever more complicated, as it affects to two different parts in the current state of autonomies (Basque Country and Navarra) and some french parts.
Picture.
that's nothing. spain should be in double digits by now. there is no market, there is only super mario.
Yes "spiked" to a whooping 2.25%.
Whatever...
NOMINALLY, 2.5% IS NOT MUCH,AGREED, BUT WHEN YOUR LEVERAGED 30-1 , 2.5% IS 80% OF YOUR EQUITY IN THE TRADE; MARGIN CALL TIME.
VERY UNPLEASANT.
IT'S FOR SURE A 'SPIKE' TO THE HEART FOR SOME TRADERS IN THOSE BONDS THIS MORNING.
U.S. 10 yr Treasury yield still climbing too this morning:
http://www.marketwatch.com/investing/bond/10_YEAR/charts?ma=1&maval=50&u...
That's gotta be hurting some margined positions
Why all the shouting? You long or something? my local econmy is doing fine, we have real products to trade and cn pay back our share for debt, fuck the rest of the country, we all know it's political bullshit.
Tick fucking tock...
SOME POOR TRADER , LONG SPANISH BONDS, JUST LOST HIS WATER......
Maybe it will take widespread blackouts in midwinter to finally convince people to take to the streets (Pennsylvania Ave. for starters).
UKIP are not separtists. UKIP (bit of a clue there) want out of the political body of the EU, rather then a people wanting control of their homeland within a country. However fragmentation of politics in the EU will continue, and no bad thing.
Time to kick the establishment in the nuts, and getting rid of the EU would be the best days work they have done for generations.
Right Farage doesn't want Scotland to leave, but that doesn't pass the smell test now does it.
We all know the level of WTF has literally sizzled way, way off the charts since 2009 and more so since early 2012. But, that movement in yields since mid-2012 relative to Spain's true ability to repay this debt is simply hall of fame caliber WTF. This might be my #1 for this era just truly mind boggling.
They are still yielding less than a US 10 year treasury, if that tells you anything.
dollar just broke up through a 8 year upper trend line
Oh but rates will never rise. Please come again!
- Mario Draghi
Kosovo is Serbia, fuck you McCain, we will ultimately kick Camp BumSteal the fuck out of our land.
I just finished reading an article that says Spanish real estate prices are up for the first time since 2008.
Spaniards must be happy to pay more and higher rates. This is extremely bullish. Who wants to work anywyay when you have sand, sangria and sex as much as you want.
I don't understand why the markets are afraid of our independence.
Spanish debt at 100% GDP ratio is totally unsustainable and will never be paid back as most of us here know.
Catalonia is relatively healthy economy and we are confident we will be able to pay our share of the debt when we manage our own finances. That should tell investors that 20-25% of their spanish debt is safe, versus 0% if we remain under the psycopathic control of the Spanish ministry of finance, which will surely continue to borrow forever.
This leads me to believe that this "market" is rigged for political reasons.
"Catalonia is relatively healthy economy..."
Catalonia is a fu****g Zero Zone of debt, corruption, and it's local "CaixaCataluña" has the deepest hole of all, so deep nobody's dare to face.
Stop dreaming.
There's corruption everywhere. The question is who you compare to. Compared to Finland Catalonia is shithole indeed.
Compared to spain it's relatively healthy as a I said.
They will make the Scots vote again and again until they get it right
They will make the Scots vote again and again until they get it right
Transylvania LEFT OUT!!!!!
Si si, we wish to vote on NOT paying the mafia anymore, riiiight