The Great Bund Short Slaughter

Tyler Durden's picture

With the world and his cat positioned for spread compression in European peripheral sovereigns ahead of the ECB's Q€, the natural 'short' that weighs on Bunds (against Spain, Italy, Portugal etc.) is being massively squeezed this morning. 10Y Bund yields have ripped 11bps from the start of the ECB press conference... in context, that's a 25% collapse in yield.



Quite a violent swing in Bund Futures (price) - too...


Charts: Nanex and Bloomberg

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buzzsaw99's picture

the greeks should be happy to hear this news /s

kliguy38's picture

good times stawks........

Dr. Engali's picture

Take out a seven year car loan then buy stawks. 


There fixed that for ya.

nuubee's picture

Don't forget to enter the collateral car into some races, you can double that asset's value to you by using it like that. Just look at what Herbie was able to accomplish.

knukles's picture

Getchur UST's while ya can still get a positive nominal yield, because all them CB's printing does the very same expansion to their M1's by buying anything.  Including UST's.
Mark my words.

KnuckleDragger-X's picture

Naa, I'm waiting till I have to pay them to take my money....

Stoploss's picture

Crispin, you smell that?

PartysOver's picture

Bund Shorts have that Euro Medieval Nuts In Vice thing going on.  They were quit fond of their torture toys.

...out of space's picture

and the money go into  10y OAT

Dr. Engali's picture

You mean I can get .34% per year on my money for the next ten years?! Hot damn! Where do I fucking sign up?

Haus-Targaryen's picture

I said a while ago you'll see negative 20 year Bunds before this insanity ends.  

the6thBook's picture

You know people on my Condo Board wouldn't move money to Treasury last years because 3% was too low... They rather leave it in checking for .05 %.

Temporalist's picture's "free" checking right? ha!

Dr. Engali's picture

People are fucking stupid. I was buying hand over fist, and it's rewarded me handsomely. We have Japan as our model. 

Haus-Targaryen's picture

Why not put it in a 10 year JP Morgan bond?  Its essentially the same as a TBill these days. 

Amish Hacker's picture

Great news! The largest economy in Europe just saw its borrowing costs decline 25% in an hour. Bullish!

Glass Seagull's picture



Governments will be shocked, shocked to be paid to issue their festering debts.


madbraz's picture

and on our side of the pond, biotechs are up 2% today because...


seriously, why isn't this talked about?  it's not like pharma and biotech are small sectors.  when does it pop?  is it bigger than the tech bubble? (yes!)


yellen voiced concerns over biotech valuation last august, when the biotech etf was at $280.  it reached $248 this morning, for another cool 24% gain.  it's up 500%.



Rodders75's picture

Simple. You just had to BTFD

Seasmoke's picture

I think Yellen is up next in the on deck circle jerk of QE~

Seasmoke's picture

For once I find it very interesting the USD keeps getting stronger, yet Gold remains pretty steady as a rock against that. 

q99x2's picture

Gold and Silver must be the new world currency. They seem to have the most stable prices out of any assets.

Hans117's picture

Gold has always been the world currency. It was just overshadowed by the paper money of various countries. Gold transcends boarders and has always sustained value more so that any paper currency ever could and ever will.

joego1's picture

I know it will cost me money but it makes me feel very safe owning bunds. Don't you feel safe?

cigarEngineer's picture

I'm only here because i saw "10Y Bund yields have ripped"

Come on ZH interns, let's proofread this stuff.

flyingpigg's picture

March bund futures are expiring and remaining shorts are squeezed.

kiwimail's picture

How can anyone trade bonds when yields move 15% in one day?  Its happened often lately with Yen especially.