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Belgium Hits Record High Yields As Business Confidence Slumps
Belgium just can't get a break. While its simultaneously arguing with France and Luxembourg over Dexia's bailout burden and suffering under a total lack of government, Merkel's unequivocal comments on Euro-bonds did nothing to save the ailing nation. Then business confidence prints worse than expected continuing its worse slide since 1993. Not only are Belgian government yields at record highs but so is the spread to German Bunds (at 350bps!) and French OATs as Dexia's credit also cracks to record wides.
Chart: Bloomberg
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when will us treasuries experience the same? when will the bubble pop?
es new low 1158
The game is to keep the attention off of the UST. Europe imploding is a great start, especially since it keeps capital flowing from the frying pan across the pond to the (eventual) fire. Of course, a little shrapnel in Syria and sabre-rattling with the Reds will help distract the masses even longer.
I think we've got some time before the USS Titanic starts taking on serious water.
me thinks we are already looking down the black hole of the drain.
that rain yesterday was a conspiracy false-flag by TPTB too
when will us treasuries experience the same? when will the bubble pop?
es new low 1158
Don't you think Benny and the (ink)Jets will sell out equities before letting the UST and USD collapse? With the misplaced hope, of course that the MSM can convince the sheeple that Au is a risk asset just like equities...
I dunno. Benny and the Inkjets have been showing an awful lot of talent of late now that they've got "on tour":
http://www.youtube.com/watch?v=CKC-A2fSQ3Y&feature=player_detailpage
looks like they brought there A-game this time.
look for the bailouts, they are comming soon. time to pluck the pidgeon.
http://expose2.wordpress.com
Bund and the rest of euro area yields have to converge at same yield theoretically and start going higher. That will solve the Eurobond question for Germans.
Exactly. And that will signal the German exit from the Euro. That, or Sarkozy's incessant bleating for a "federation." To paraphrase Kyle Bass: there's no way the Germans will agree to be jointly and severally liable with the periphery.
i'm sorry. did you say convergence will "solve the Eurobond question for the Germans"?
Bund and the rest of euro area yields have to converge at same yield theoretically and start going higher. That will solve the Eurobond question for Germans.
In Bruges Bitchez
....suffering under the total lack of gubmint....
Shouldn't that read ....celebrating the total lack of gubmint...
Zippy the Pinhead sums up the problem in three words:
http://1.bp.blogspot.com/_yAdxTp2HDQM/S-WWgGxh7_I/AAAAAAAAByA/m4tsgXhlM-...
Maybe that's what hell is, the entire rest of eternity spent in fucking Bruges.
Tylers,
I very much appreciate that you guy's are still bringin' it even on Thanksgiving & I hope that those of you who are U.S. based have a great holiday with family and friends.
Thank you so much for what you do.
Roger that. The world's unraveling doesn't wait for a US holiday, or for anyone else's holiday.
Belgian cartoon hero TinTin will soon become ten ten percent interest rate bonds
Thanksgiving Day waffles!
Today, our prime minister Yves Leterme asked the Belgian people to please register for the next issuance of 5-year bonds on december 4. These bonds will be sold with the rate of 4% (This is bruto. On the yearly dividents we have to pay 20% taxes here...). Since Belgians have savings of around 3 times the total Belgian debt, this would help to finance the debt at lower levels, would send a message of trust to other countries, and would create more of a Japan-scenario, where the debt is owned by the citizens. So far the theory...
In practice, people are pissed. We just got ripped off by the tune of 65 billion euro by this same guy for guarantees for Dexia bank (with 10 million Belgians this amounts to 24K euro per family, or around one year's worth of salary). The new government formation (after 500+ days) is completely locked because they can't agree on how much more they are going to tax us (tax is already at 55%). And now they even DARE to ask us to loan our (already heavily taxed) savings to the state, for a reduced interest compared to what you would get from the open market, and which they can tax AGAIN everytime a divident is payed. Not mentioning the risk taken on...
You should see the message boards and the discussions on the street, at work, in the pubs... Discussions are starting everywhere over actively boycotting this joke of a country, taking it to the street, and so on. If this goes on for even one more week, I don't know what would happen. Luckily Belgians are rather peaceful, lazy, and relatively wealthy. For now at least...
you should try the "zero percent on your savings" while prices surge in the USA. Luckily we're violent, psychotic, hard working and poor. And that's just for starters...
Leterme: they should quarter him using his own goates...
belgium is asking, but if they don't get it, they will be passing laws to require citizens to purchase with reitrement accounts or whatever you guys have. and once that cat is out of the bag, just bend over rover.
Belgium is easy. Just split it in two and give half to the Dutch and half to the French. Problem solved.
what about the german speaking part of Belgium? one option would be to join Luxembourg.
What kind of country gets beat up by Luxembourg? I mean...c'mon Belgium. MAN UP HERE! Kick some Luxembourg ass or something!
These yields pale when compared to Greece. The 1 year Yield in Greece is now over 300%:
http://johngaltfla.com/wordpress/2011/11/23/11-23-11-greece-wins-the-fir...
Where do i get one of those?
suffering under a total lack of government?? I wish we were so lucky.
"Belgium Hits Record High Yields"
That's OK!! Just makes the bonds more attractive to banks, who, according to Basel III, need ZERO capital reserve against "highly rated" sovereign debt like Belgium and Slovenia.
Yep, the entire European bond market is collapsing. Not surprised in the least.