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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DormRoom's picture

Paulson and his wolfpack.

ihedgemyhedges's picture

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

DormRoom's picture

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

 

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).

ihedgemyhedges's picture

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

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. 

Aductor's picture

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

cossack55's picture

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

youngman's picture

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

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.

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

HD's picture

Bearish cans and roads.

Bullish hats and rabbits?

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.

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.

Dr. Engali's picture

Nothing a little printing won't take care of.

asteroids's picture

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

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

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

q99x2's picture

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

ghostfaceinvestah's picture

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

Other than Draghi, that is.