Spanish Bond Yields Plunge To Record Lows As 'Economy Improves' (Just Don't Tell The Nation's Youth)

Tyler Durden's picture

Spain’s two-year bond yields have collapsed to a record low -35bps this week and Portugal's followed suit, plunging near record low levels as Draghi's "whatever it takes" has benefitted all those front-running bondholders but left youth unemployment hovering still near record-high levels.

As a strong euro weighs on the region’s inflation outlook, it makes it harder for the European Central Bank to end quantitative easing and negative interest rates, said Peter Chatwell, head of European rates strategy at Mizuho International Plc in London, and sure enough today's reports that Draghi's Jackson Hole appearance will be a nothing burger has sparked more anticipation that QE isn't ending anytime soon, despite better-late-than-never complaints from the Germans.

"Whatever it takes" to keep asset prices high!

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back to basics's picture

Several lost generations sacrificed at the euro altar. 

Haus-Targaryen's picture

Now I am become death; the destroyer of worlds. 

-- M. Draghi 

Planet Israel's picture

The EU is a democracy and this is what the European people want

-- Ghordius

Five Star's picture

Greece has had negative 3% real GDP growth over since the entire period since 2000, Italy only 1% (not per year but in total), Spain a bit more. Those are objectively some of the slowest ratest in the whole world. Worse than countries like Iraq or Sudan. The Euro is a colossal disaster

peterk's picture

This is  stupid Alice in Wonderland economics.

How can spain  argentina  greece etc have such low rates and justify it?

These nations should be paying 15%+ due to their default risk.


The FED BOJ ECB wont ever stop printing, they will continue with it until

either WAR happens or the  banking system  IMPLODES internally from bad debts.

Thats when the reall PRICE OF MONEY can  show up.. until then its this alice in wonderland interest rate  nonsense.


Hkan's picture

Whats going on inside the head of politicians.......beside greed...prestige....anything?

BritBob's picture

If the Spanish economy takes a turn for the worse the Spanish will always play the Gibraltar card -

From the top down: -


Spanish king uses the address of the UN demand to Great Britain return Gibraltar(RT 22 Sep, 2016 )

PM  Rajoy- Gibraltar "this is the such territory in Europe and that affects to our own integrity territorial", said the Mr Rajoy, saying that Britain had "ignored the mandate" of the Assembly General of the UN. (Daily Telegraph, 26 September 2013)

Foreign Minister Dastis: « I am for "Gibraltar, Spanish", but you have to be smart. (8 feb, 2017


Gibraltar - Some Relevant International Law:



Ah well.

Planet Israel's picture

Bob, you realize that there are like 10 synongogs in Gibraltar and the majority of its inhabitants are Jewish, don't you?  Why do you want to have brits die for money changers?

taketheredpill's picture



I'm assuming both Spain and Portugal Youth Unemployment data has the same downward bias as the US etc.

If you haven't ooked for a job in the past year, then you are not considered part of the labour force and drop out of the calculation.

So the math ensures that the Unemployment Rate grinds lower.