Carnage Continues: EU Equity Futures Crash 7%, Bund Yields Plunge 20bps, Italy/Spain Bonds Dumped

Tyler Durden's picture

It appears Greece matters after all - US futures are tumbling, Japanese stocks are tanking (as JPY is bid on mass carry unwinds), Chinese stocks are limit down and collapsing.. and now European equity futures are open and in free-fall. Bunds are well bid, down 20bps to 72bps.

  • *EURO STOXX 50 FUTURES FALL 7% AT MARKET OPEN

DAX is down over 5%...

 

France's CAC and UK FTSE 100 are also down hard.

  • *GERMAN BONDS SURGE AT OPEN, 10-YEAR YIELD FALLS 20 BPS TO 0.72%

 

  • *SPANISH 10-YEAR BONDS DECLINE WITH YIELD RISING 43 BPS TO 2.54%
  • *ITALIAN BONDS DECLINE WITH 10-YEAR YIELD RISING 57 BPS TO 2.72%

 

We await the hand of God Draghi...

 

Charts: Bloomberg

Bonus Chart: Nikkei 225 down 715 points...

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THX 1178's picture

Oh shit bitches its on like DK up in this piece!!!!

THX 1178's picture

up in this contagion-vulnerable universe!

wee-weed up's picture

It appears Greece matters after all...

+100

Haus-Targaryen's picture

Nothing to contain until tomorrow, technically.  

Keep your shit cool people, this is all just speculation.  

Soul Glow's picture

Dude the DAX is down 4%, France is down 4%, The Greek exchange isn't even open, China is down 25% the last 2 weeks, US equity is down 2% overnight, and gold is up.

And the Greek banking system is closed for a week.  One whole week!

Keep our shit cool?  You keep your shit cool I'm going to flush mine down the toilet.

Short stocks, short bonds, short cash, long gold.

It's game over and I'm fucking ready.

:)

random999's picture

sounds like a good strategy to lose.

My gold is already stacked. My stocks stay.

What would I change them for? Euros? hahahaha. Expect ECB to fold any second now..and if they dont, they dont.. be happy your home is stacked with food, goldbars and guns.

Haus-Targaryen's picture

The ECB will run headlong into this ref. 

60% of Greeks today want to keep EUR and reimpose austerity.  If they vote "Yes" in their referendum, Syriza must resign and new elections called.  

It will be chaos, but if the referndum goes "Yes" the ECB will turn back on the ELA and extend the current program a month or two.  

If the referendum goes "no" then I have no idea what will happen.  

The volitility right now is going to get out of control.  Short EUR sounds like a good position to have, but if someone "leaks" "all is solved" your position just got wiped out, and you're likely way upside down.  

Count me out until I can start buying hard assets for pennies/Pfennigs on the EUR/Mark.  

USisCorrupt's picture

Forget the run on the banks, watch for the run on the preciuos metals while they continue to surpress the prices.

 

On a side note the FED's have issued a terror warning in the US for the upcoming holiday, they should know for they will be the one's behind the dirty deed.

 

Time to pray.

Haus-Targaryen's picture

The run on the banks have stopped -- Greek banks are closed.  

The questions before us now are quite simple;

1) Will Greece default?
2) If so, will it liquidate its debts?
3) Will it leave the EZ?

2 is contingent upon 1, but 2 is not the necessary consequence of 1.  See Cyprus.  

2 is not contingent upon 3 either.  Greece could leave the EUR and payback its debts in inflated currency.  This in my opinion is a horrible idea as hyperinflation would surly set in, but in theory it could happen.  

I think Greece's best course of action is 1, 3 and then 2 in that order. I get the feeling the Greeks are hoping for just #2 whereas the ECB is hoping for none of the above.  

 

USisCorrupt's picture

Meanwhile they continue to surpress Precious Metals, that is the RUN that I want to see happen.

 

But make no mistake, the FED's issued a terrorist warning for the upcoming July 4th weekend, they should know for they will be the ones behind the dirty deed. They will need distractions to divert the blame of the collapse.

 

Watch and learn Children.

Luc X. Ifer's picture

last week got news from all my friends working in IT departments for financial instituions all over the world that they got directives to prepare to be able to face a shitstorm of epical proportions. it was expected and if you think it wasn't u r just a plain ignorant retarted ass.

samjam7's picture

I see more can kicking

1) Lagarde will wait and not declare Greece bankrupt until the referendum, retracking what she previsouly said but who would notice?

2) Can Greece actually pay back its debt in another currency? I think either it has to pay it back in Euros or not at all.

3) I think people will cave out of fear from the unkown and vote Yes, despite Tsipras impoloring them not to...

Haus-Targaryen's picture

I agree completely. 

Greece will subject itself via referendum to slavery.  

What would be interesting, at least I think -- would be if you had a election, and the anti-EUR parties (KKE, Syriza, Golden Dawn, Independent Greeks) take more seats than the pro EUR parties (PASOK, ND & to Potami) after a Yes referendum.  

Conflicting mandates.  Due to Greek election laws, ND would form a government from a minority position to subject the population to more austerity against the majority. Would be completely possible. 

I think the Greek population is in denial -- they believe they can keep the EUR and return to the good ol'days of 2004.  Then again, if they haven't figured it out by now -- they probably never will. 

samjam7's picture

True, it's difficult to face reality, maybe some are waking up now that they can only withdraw 60 Euros a day but who knows they may well blame Tsipras for it instead of the ECB.

The long lines yesterday and the utter unpreparedness for what was bound to happen, left me wondering how many people actually know or care what their prime minister has been doing during the last 6 months?!

The latest survey on the referndum shows up to 20% of undecided voters which could still turn the tide to a 'No' in theory but as a Swiss who is quite familiar with 'referendum voting habits' I can say that people tend to avoid the unkown...

 

Haus-Targaryen's picture

All that means is the Greeks want more unemployment.  

If they vote yes, I would be completely content giving it to them.  

FlacoGee's picture

Note how you did not put a % next to Gold "is up" as you did when you used % next to the downs.

Without even checking gold I knew it was flat on the day and Silver was down.

Gold is going no where...  The bubble exploded in 2011.  It will be another 15 years for another group of suckers to come of age.

Haus-Targaryen's picture

You'd have to explain to me then the east stacking up on it.

greenskeeper carl's picture

Yes, those 2 billion Indians and Chinese sure are going to feel silly with all that stupid gold while we have all the dollars.... Suckers....

FlacoGee's picture

You mean the same people buying the Shanghai?   And BitCoin @ $1100?

TheRideNeverEnds's picture

Don't worry in a few hours they will probably push the S&P back up to green like they always do, its already gained back almost half of its initial drop.   If not this week then surely new highs by this time next month.  

 

Keep calm and buy the dip.  

nmewn's picture

Yes, by all means, transform all available physical cash savings into electronic digits one can view on a screen, regardless of the spector of capital controls, sovereign bankruptcies or banks locking their doors.

Trust in the hidden hand of central bankers my friends, its only here to help push things along in an upward direction, so completely unrigged ;-)

XAU XAG's picture

The pictures at the ATM................................show Holiday makers.........................drawing out cash

 

DOES NOT LOOK LIKE MANY GREEKS IN THE QUE'S

 

JUST SAYING

Gambit's picture

Helllllll Yeahhhhh!!!

Which is worse - bankers or terrorists's picture

BTFD, unfortunately. Both sides have too much to lose by not coming to a deal. My take is a YES vote on the 5th....too many Greeks are going to decide they don't like living on 60 euros day and will vote out of short-term interest. 

Oldwood's picture

The great disasters of history are chock full of impossibly stupid mistakes, foolish calculations to human and social responses. Look at where we are right now. Who would have thunk we would have deliberately destroyed our society by a series of impossibly stupid choices....but we did.

I don't discount anything from happening. I only know that for me to actually place a bet on it ensures it will not go as I had anticipated. Other than just taking some defensive positions, I will remain an observer hoping to be able to anticipate only the most immediate threats and respond properly. At least after watching this going down for years, I may not know what exactly is coming and when, but hopefully I will know enough to respond properly, recognizing a real threat when I see it.

The Greeks have been living in delusion for so long and find themselves in such a deep hole, rationality may be completely gone. It seems that desperation is not conducive to reasoned rational thought.

FredFlintstone's picture

True words. Are the Greeks any more delusional than us Americans? Are we more delusional?

NewThor's picture

American awareness of these Events feels pretty Limit Down. 

OldPhart's picture

It wasn't Greece, it was the fookin' spics!!

I'm so looking forward to NY Markets opening.  My pittance 401k may get hit, but that's not where my money is.

This could be really entertaining!!

OldPhart's picture

Per MarketWatch, 6/29/15, 0115 PDT, this is getting fun!

German market up damned near 15% on 10 year bond rates.  Wonder how it holds to end of day?

16%

17%

[edit]

Italian banks not trading...

http://www.marketwatch.com/story/many-italian-banks-fail-to-start-trading-monday-2015-06-29?link=MW_home_latest_news

this is good stuff!!

Dead Canary's picture

Bout time. This nigga needs ta get PAID!

Barney Franks Gerbil's picture

Lube me up, I am going in!

Itshappening's picture

Its ok. Yellen and Draghi got this. Everything is under control... If you believe me Ive got a great bridge you might be interested in buying. Water front property.

Mentaliusanything's picture

seems appropriate at this time because it was a similar era

"I've seen things you people wouldn't believe. Attack ships on fire off the shoulder of Orion. I watched C-beams glitter in the dark near the Tannhauser gate. All those moments will be lost in time... like tears in rain... Time to die."

RealityCheque's picture

Today the drama. Kneejerk selling and panic.

Next week the reality, the sellers will calm down. But they'll keep selling and everyone else will stay away.

Draghi, Yellen, all of 'em: they have no solution that will work beyond the next day or two. "Pissing at a tidal wave" will be the title of Yellen's autobiography.

THX 1178's picture

Thanks for the yellen mental image, im going to go lobotomize myself now.

ymom11's picture

Is this the seven year cycle asserting itself?

polo007's picture

According to Macquarie Research:

http://personal.crocodoc.com/lHeFs3w

China drama & Greek farce

Are Central Banks at the end of the road?

Greek and Chinese dramas question role of Central Banks…

- The latest developments in China and the Eurozone inevitably invite the question whether Central Banks are coming to the end of the road. Given the limited impact of their policies on real economies with stimulus largely being confined within walls of financial assets, has the time of reckoning finally arrived?

- As discussed in the past (here & here), the only sustainable LT outcomes for the over-leveraged and over-supplied global economy are either: (a) allowing the deflationary cycle to go through, thus eliminating global excess capacity in service and merchandise economies; (b) elimination of excess debt via some form of hyperinflation and/or co-ordinated debt cancellation; or (c) banning capital markets via nationalization. Given that neither of these alternatives is attractive, involving pain for either borrowers or savers; intergenerational transfers or courting sharply lower ROIC, CBs would rather kick the can down the road in the hope that a solution would be eventually found.

…and should CBs place monetary policies in neutral gear?

- PBoC’s half-hearted attempts last week to slow the pace of appreciation of the equity market have inevitably and predictably resulted in severe correction. The double-barrel reduction in interest rates and RRR on Saturday is a belated realization that it is courting a significant economic backlash. As discussed here, we do not believe that China’s de-leveraging is either possible or desirable. Having reached leverage of ~3:1, any debate about the evils or virtue of debt has passed a long time ago, and the only viable choice from now on is to continue leveraging, though perhaps at a somewhat slower and safer pace.

- In order to continue leveraging, PBoC has to make sure that: (a) there is no sharp correction in any of the key asset prices; (b) at least some asset prices are appreciating; and (c) there is no further contraction in nominal GDP. This requires a combination of exceptionally stimulative monetary and fiscal policies as well as trust that a country is not yet in a liquidity trap and that it is capable responding to stimulus in safeguarding nominal GDP. The game is no longer about reaching 7% real GDP growth but avoiding zero nominal GDP.

- The same dynamics are playing out in Europe. The battle is between politicians who have not yet grasped that deleveraging is no longer feasible, and the ECB, which is fully onboard. Whether Greece is allowed to exit does not alter the basic argument that the numbers do not work, unless leveraging continues.

China is at very early stages of stimulus

- We maintain that China is at an early stage of significant (probably the largest globally) stimulative action. We expect that over the next two years, RRRs would be reduced to historic levels (i.e. 5-6%); interest rates would be lowered to zero and fiscal spending would become much more aggressive (including multiple banking re-capitalizations). The only question is whether China would send a massive inflationary pulse through global economy or would aim for more moderate impact. Initially, the PBoC would be aiming for moderate outcomes, ensuring support for asset prices but avoiding more disruptive action. However as we progress into 2016-17, more drastic actions might be needed. In the meantime, we remain O/W MSCI China, as equities remain the least systemic asset class that can be leveraged, at least for now.

Government needs you to pay taxes's picture

(D) backdoor elimination of capital markets via distorting capital price discovery all to hell while passively watching liquidity disappear at an accelerating rate.  When liquidity vanishes completely, watch the whole shitshow blow sky high, blame it on the HF algos, and dont forget to use the crisis to justify grabbing the guns and all remaining civil rights.

 

Gee Bob, I've gotta go 'D", final answer. . .

biggestbrother's picture

RIDE EM COWBOY!

WE IS ALL CASHED UP.

TOlD YA SO.

 

Long USD 

Atomizer's picture

The chart resembles a CNN reporting of a new ISIS Buttplugs and Dildos flag in London. 

 

https://m.youtube.com/watch?v=5y6qTLf0AI4

StackShinyStuff's picture

Anyone who thinks this shit is staying down hasn't been paying attention.  Oh, I wish it would, but history has demonstrated that shorting is dangerous to your health.

Yttrium Gold Nitrogen's picture

Was it Merkel who demanded this mess better be fixed up before markets open on monday?

Senduko's picture

Yes, well she did kinda get what she asked

Atomizer's picture

Where's the Afro-American woman kiting her flag up the pole in Charleston, SC? She was climbing to receive a $10,000/month EBT for life card.

Chapter Jackson - It's Free Swipe Yo EBT(Explicit) - YouTube

/sarc

Hapa's picture

I just spilled my popcorn bowl.  Popcorn everywhere!  I need to go get that Costco bag.