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WTF Chart Of The Day - Italian 2Y Bond Yields Collapse Below Zero For First Time Ever
Presented with little comment aside to say... WTF!!!
Italy 2Y yields are -10bps to -0.6bps...
Some context for that...
Charts: Bloomberg
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Everyone seems to have heard Draghi say the word QE this morning and nothing else.
Things can get real stupid when the people trade their lives for things made out the mouths of liars manifested through printers and digital blips...on the other hand..what difference does it make?
RIPS
You know that things are good when interest on your money is NEGATIVE...
Especially for holding that fine Italian debt.
kind'a like a fine vintage Lambrusco
Banks need collateral. At any price.
And there's simply not enough to cover demand.
It also show that credit is still getting bigger and bigger and bigger.
Wop debt better then Seppo debt.
Dupe.
Fuck You Bernanke!!
RIPS
I'll drink to that!
Europe is contained. Mission accomplished.
Yes, but does anything else matter at this point?
Nirpitalia - either a new Ferrari, or the new currency.
Give the bank 100 lire, get 50 back in exchange.
Have a nice day. Coming soon to a fractional reserve banking currency in your neighborhood.
This is a level of stupidity that I haven't seen for a long time.
Yeah, magic like this is a special event...so far......
Many more levels to go my friend. Many more levels.
Maybe Italy got it's house in order, rebuild a entire industrial base, got it's deficits in order, got it's debt down, unemployment down....
HAHAHAHAHAHAHA
It could also be the wine :)
clearly, it's the ferarri IPO.
seriously, though, is Tyler sure this is the italian 2 year? WTF indeed.
seems like yesterday we were watching the italian 5 year approach 7% (2011)...and now, well, again...WTF???
janus
You must pay us to let us borrow from you! You must!
Seems solid. Negative interest backed by the full faith and credit of the Italian government.
ok, how does a regular person short this. i gladly pay the neg yield while borrowing and selling the bond....last time germany went negative for a while, it got slapped back up after comments from gross et al
LOAD ME UP PAISAN!
https://youtu.be/atxUuldUcfI
Draghi is buying with both hands.
Italy bad debt / bln Euro: http://www.querschuesse.de/wp-content/uploads/2015/09/D1009.png
Soo many holes in the boat...only thing keeping it propped up is the propaganda perception in the msm..but at some point...
Clearly, they already unleashed QE. It is too big to even talk about. Anything a banker needs a higher price on, is getting a higher price. The idea that a non-central bank is so worried about saftey of its capital, that it puts it capital in negative yield bonds for an investment, is absurd. They would stay in cash if they were worried, This is central banks and people who know central banks front running them. Nothing new here at all.
SHORT NOW!
There's gonna come a day where the price of every asset class drops an average of 30%. What a day that is gonna be.
This is getting fucking goofy!!
If Italian 2 year are negative, (I heard German bunds went neagtive as well), then the only one buying is the CB which would, I presume allow the Italians (and Germans) to issue new debt at zero cost. Do I have this right?
Well, it's obviously warrented, or it wouldn't be happening.
Hahahahahahaha!
So the Italians are being paid to borrow money? What could possibly go wrong.....
Negative rates IS QE!
Mama Mia!
A back door bailout for the PIIGS? At -0.002 they'll have it paid off in about 500 years. Problem SOLVED!
Okay.
I don't get it.
They're just testing their new video game to see if it works.
Is it conceivable we will pay premiums to purchase Italian bonds that have zero hope of being paid back if things get dicey? WTF is the world spinning into, absolute absurdity?