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Greek 10Y Bonds Collapse - Yield Tops 15%
Greek stocks may be closed and the bond market super-illiquid but traders are willing to dump GGBs at almost any price for now. 10Y Greek government bonds are spiking over 400bps and have topped 15% for the first time since December 2012.
Charts: Bloomberg
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Awesome, load up your 401k for the Greece is fixed rally.
Why do interest rates matter on planet Fiat?
Because interest only loans are the best deal ever!
15% interest????
Might as well make it 100% or 10,000% interest; nobody's going to see any of that interest let alone the return of their original capital...
That is in fact a BOND MARKET...so this isn't like Russia where you are paying 15% interest on the CURRENCY.
In other words there is PRINCIPLE in that debt...perhaps very valuable principle actually.
They do have the largest gold reserves in Europe in Greece...
Backstop is "what's left of Germany."
Lot higher yields in the world with a lot greater political risk (Argentina, Ukraine)...
Probably not for sale to Joe Schmo's like me of course...
Quit copying my investment strategy.
-J Corzine
Even back in 2012 HItler saw this coming. Man he was almost spot on, even China too: https://www.youtube.com/watch?v=OZPmnCC2d8U
Harry S Truman is more like it...
Aristotle?...
Kind of meaningless at this point since we've been watching this tsunami coming for awhile, but I guess the sheep has to panic sooner or later......
http://www.theblaze.com/stories/2015/06/25/louis-farrakhan-we-need-to-pu...
There is something in that story that needs to be put down and it's not the American flag.
Apparently it's called "Chicago....
Putin will come and buy all of Greece's bonds any moment now.
Any moment.
Still waiting.
Oh what was that? Putin can't let a good crisis go to waste and is going to let Greece leave the euro and have stock markets and bond markets crash before he spends his rubles on anything but gold?
Makes sense doesn't it.
:)
The OVERNIGHT on the Ruble is 15%.
This ain't Argentina either...
So let me see if I understand this? I buy the bonds, they nominally yield 15%, except that they can't afford to pay the coupons or the principal, so I actually get nothing - where do I sign up for this deal!
EXACTLY! Who the fuck in their right mind would purchase said bonds? AND better yet, why in the hell would Greece sell this paper only to pay interest on other debts that they can't afford already?
Running a budget surplus, depreciating currency which apparently "Switzerand is buying hands over fist"...with the right political connections sure looks like a safer bet than Ukraine...
Wake me up when the yield on the US 10 yr is 18 percent which is where it would be without central bank open market operations.
https://www.youtube.com/watch?v=Be-T0AaqwGo No shit....
What about Spain? Italy? Portugal?
That's what the IMF has it's eye on in my view.
Just speculating but that is 25,000 tons of gold...give or take.
"Just say Uncle...
At least us European taxpayers will cash this yield. Right? Right?
Martin Armstrong has some very good bond discussion on his blog www.armstrongeconomics.com
Also, I highly recommend his movie if you have not seen it - very well done (The Forecaster). I rented it on Vimeo and watched it 2x.
In his blog Armstrong is predicting markets to remain volatile all summer with a rally in USD. He remains bearish on metals. (I saw an article today from some Indian of all people saying gold is going to $800 an ounce in 2015.)
Thats probably the current dollar price for gold in India actually.
They trade their gold freely over there.
It's not like the USA has had a run on their jewelry stores.
That says to me "there are no dollars to be had...and they are VERY valuable dollars indeed."
Turkey may offer interest free loans to Greece. Putin backdoor????
http://www.dailysabah.com/diplomacy/2015/06/29/turkey-can-undertake-gree...
Greece's DEBT yields less than their MONEY.
British Pounds maybe...
GS said in May they were buying greek debt
15% times value of bond plus Value of bond times ZERO...
What does that equal?
A bad deal....
Buying their 10Y bond...is like playing with a grease fire..be very careful..
Return OF capital is more important than Return ON capital