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Back To Ground Zero: Spanish Bonds Now Red

Tyler Durden's picture





 

One of the more peculiar developments this morning was the odd divergence between the Spanish stock market, which was down over 3% at last check, and Spanish 10 Year bonds (that catalytic instrument to get LTRO 3, as all they have to do is rise to 7.50% and all shall be well), which had been green on the day all day, until now. As of seconds ago, the Spanish benchmark bond just crossed back into red territory with the yield spiking from an intraday low of 5.717% early to 5.89%, finally catching up with Spanish CDS which have been wider for a while, now that CDS is once again more liquid and credible than cash bonds... At least until ISDA is called upon to decide if and when a credit event has (never) occurred with respect to Spain. And since contagion feeds on itself, tomorrow's Spanish auction is starting to look more and more concerning.

 


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Wed, 04/18/2012 - 09:39 | Link to Comment DormRoom
DormRoom's picture

Paulson and his wolfpack.

Wed, 04/18/2012 - 09:43 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Ahhhhhh, nothing a good swap line won't take care of.....................

Wed, 04/18/2012 - 09:54 | Link to Comment DormRoom
DormRoom's picture

Spain is too big to fail & too big to save.

 

Wed, 04/18/2012 - 10:03 | Link to Comment Non Passaran
Non Passaran's picture

Unfortunately it's not. But let me know when and how you put your money on that, then we'll see what you're made of.
(PMs don't count as it's by no means guaranteed they'll go up, they're just general means of protection against uncertainty).

Wed, 04/18/2012 - 10:06 | Link to Comment WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

barbaric relic

Wed, 04/18/2012 - 10:08 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

"WHAT AM I GONNA DO WITH ALL THIS PAELLA?!?!?!?!"

Wed, 04/18/2012 - 10:42 | Link to Comment slaughterer
slaughterer's picture

Paulson is all about destroying the EUR and a few EZ countries with it.

The ECB is all about saving the EUR and a few countries with it.

Who has the bigger bazooka?

Tomorrow we find out. 

Wed, 04/18/2012 - 09:41 | Link to Comment MFL8240
MFL8240's picture

Casino open!

Wed, 04/18/2012 - 09:42 | Link to Comment Aductor
Aductor's picture

Indeed. Land of cheap nat gas and hopium takes the lead!

Wed, 04/18/2012 - 09:43 | Link to Comment cossack55
cossack55's picture

Concerning to whom?  Certainly not me.  Let er' rip.

Wed, 04/18/2012 - 09:43 | Link to Comment youngman
youngman's picture

It will be  a 5 to 1 bid to cover ratio....very sucessful...what is the word...unexpected

Wed, 04/18/2012 - 09:48 | Link to Comment LongSoupLine
LongSoupLine's picture

Dont worry, Goldman just upgraded AAPL...

 

oh, wait...scratch that.  Contrarian GS signal.

 

EDIT:  whomever the asshat wimp troll is junking me instantly on most of my posts can go fuck themself.

Wed, 04/18/2012 - 10:10 | Link to Comment WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

 

 

http://www.youtube.com/watch?v=pfE_98yy2iw&feature=related

I believe you are looking for this.

Wed, 04/18/2012 - 09:42 | Link to Comment spine001
spine001's picture

No problem with this, the ECB will just indirectly buy spanish bonds and everything will be OK. The only reality that people should keep focused on is INFLATION. Wallpapering like it's being done only happened in the Weimar Republic. And don't wait for it to happen, since it will be like Gas catching fire. Too fast to follow. Algorithms are written and ready and will trigger on their own.

Until next time,

Engineer

Wed, 04/18/2012 - 09:43 | Link to Comment HD
HD's picture

Bearish cans and roads.

Bullish hats and rabbits?

Wed, 04/18/2012 - 09:45 | Link to Comment Stoploss
Stoploss's picture

I hear this Iksil kid is buying all of the spanish shit. And maybe Italian.

I can't confirm one way or the other.

If this is the case, we are at midnight.

Wed, 04/18/2012 - 09:46 | Link to Comment ZeroPower
ZeroPower's picture

Indeed, consensus looks like SPA 10yr tomorrow might price quite wide of what the market is expecting, not to mention prior 10yr auction. If it prices in-line however expected a nice squeeze like Tuesday was.

Wed, 04/18/2012 - 09:58 | Link to Comment Dr. Engali
Dr. Engali's picture

Nothing a little printing won't take care of.

Wed, 04/18/2012 - 10:10 | Link to Comment asteroids
asteroids's picture

They need to keep the rate to 6.75 for a few months. No need to get greedy.

Wed, 04/18/2012 - 10:11 | Link to Comment Dick Darlington
Dick Darlington's picture

This just hit the screens:

 

*ITALY BANKS' FEB BAD-LOAN RATIO RISES TO HIGHEST SINCE 2000

*ITALIAN BANKING ASSOCIATION RELEASES BAD-LOAN DATA      :UCG IM

*ITALIAN BANKS' BAD-LOAN RATIO 6.3% IN FEB VS 6.2% IN JAN

*ITALY BANKS BAD LOANS IN FEB RISE 16.5% YOY TO EU107.6 BLN

Wed, 04/18/2012 - 10:13 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

MAMA MIA!!!!

Wed, 04/18/2012 - 10:29 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Bad loans Bad loans nothing the ECB cant take. Fuck me all of Europe is a stinking pile of pass the parcel. The place swims in shit. They gunna need a lot of lipstick and strong anti perspirant to pretty these gluttonous PIGS

Wed, 04/18/2012 - 11:07 | Link to Comment tocointhephrase
tocointhephrase's picture

iThought that was iTaly?

Wed, 04/18/2012 - 11:49 | Link to Comment q99x2
q99x2's picture

How's anyone supposed to get any sleep around here?

Wed, 04/18/2012 - 12:58 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Who in their right mind would lend Spain money at 10 years for 6%?

Other than Draghi, that is.

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