Europe's Leaking

Tyler Durden's picture


After Thursday/Friday's capitulative spikes in all things risk-on (from credit spreads to equity indices and from Swiss 2Y rates to European VIX), today saw a more modest give back of some of those gains. Spanish and Italian bond curves saw quite notable deterioration (yields up 5-20bps across the curves - dominated by short-dated weakness) - though of course in the context of the previous week's rally this was modest. Equity indices fell around 0.25% and Europe's VIX rose notably - but again all in the context of the recent rally, these were small moves. EURUSD regained 1.28 into the European close but the ranges were mininal in most risk assets and correlation across asset-classes were low too - just a noisy day with little signal ahead of the week's more cataclysmic events.


European stocks trod water...


and 2Y Spain and Italy saw yields rise 14 and 8bps respectively on the day... (with 5Y +17bps and +14bps respectively)...


and Europe's VIX has bounced off pre-Draghi lows...


Chart: Bloomberg

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Mon, 09/10/2012 - 11:55 | 2778623 LawsofPhysics
LawsofPhysics's picture

Same as it ever was, wake me when U.S. treasury yields start "leaking" higher.

Mon, 09/10/2012 - 11:58 | 2778630 Stackers
Stackers's picture

The "baked Lays" of the financial world ?

Mon, 09/10/2012 - 12:08 | 2778664 Intoxicologist
Intoxicologist's picture

lol...You can't excrete just one!

Mon, 09/10/2012 - 12:31 | 2778753 Stock Tips Inve...
Stock Tips Investment's picture

You have to stay awake. The markets are starting to show signs of life. Whether up or down. What matters is to do so in circumstances in which we can benefit. And that's just what I think will happen.

Mon, 09/10/2012 - 11:59 | 2778633 fuu
fuu's picture

Pours one out on the curb for Slewie.

Mon, 09/10/2012 - 12:19 | 2778678 Abraxas
Abraxas's picture

What happened? Went overboard? The problem with censorship is that no one exactly knows when to start it and when to end it, and if you're not careful, soon enough you create a sterile environment where only "appropriate" comments get some air. Just like what happened to Turd's website. It becomes boring and predicatable with lots of praise glory posts that add neither value nor humor.

Mon, 09/10/2012 - 12:25 | 2778732 malikai
malikai's picture

I'd also like to know what happened. Did o'l slewie get the banhammer or something?

Mon, 09/10/2012 - 12:55 | 2778834 seek
seek's picture

I think this is due to his posts in Friday's unemployment report thread:

Wild guess: I think the discussion went a bit off the rails civility wise in the part where Slewie called one of the Tylers a "cunt face." Probably pushed things just a bit too far there, and I'm guessing the ban probably needed approval which came today.

Mon, 09/10/2012 - 13:08 | 2778861 fuu
fuu's picture

I was pretty sure the "cunt face" was directed at Dasa Slooofoot.

Either way he was posting Saturday afternoon.

Mon, 09/10/2012 - 13:03 | 2778868 malikai
malikai's picture

I guess I can agree that slewie's comments were a bit harsh, and probably unwarranted. But a ban for speaking his mind?

Mon, 09/10/2012 - 13:17 | 2778916 IndicaTive
IndicaTive's picture

Slewie had also linked back to an earlier post where he directly called Tyler out and accused him of going easy on Mittens. Went so far as to accuse them of quid-pro-quo. Also said Tyler was "campaigning." Continued to demand a direct "yes or no" response from Tyler. Who knows?

Mon, 09/10/2012 - 13:53 | 2779089 fuu
fuu's picture

He's been doing that for weeks now, why the sudden boot?

Mon, 09/10/2012 - 13:03 | 2778866 IndicaTive
IndicaTive's picture

I noticed him calling out Tyler pretty loudly over past several days. Another guy who replied to one of Slewie's posts is gone too He also called Tyler out in the post. Not sure if that would result in banning, but I remember thinking "ouch." I'm not linking to any of the discussion, I don't want my chip turned off. But for what it's worth, I enjoyed reading slewienomics.

Mon, 09/10/2012 - 12:03 | 2778646 Dick Darlington
Dick Darlington's picture

Needed a diaper change immediately when Italy, Spain, Greece announced there will be NO MORE "measures". The huge splashing sounds heard around the political utopia turned into dystopia aka Europe were the sounds of "reform gloves" dropping to the floor. It was naturally as expected. All the beggars wanted with their threats was ECB to promise it will monetize their debt. And ECB promised, of course. Now all the promised cuts and reforms are history. And with countries like France reforms/cuts were not even promised. Hollande rides free on the backs of Rajoy and Monti. What was promised is moar debt financed spending to chase the socialist utopia. Fellas, read my lips: nothing has changed and nothing will change. It's full speed to the brick wall. Do not fall for the lies of european politicians.

Mon, 09/10/2012 - 12:05 | 2778654 No Euros please...
No Euros please we're British's picture

Bullish for Tena.

Mon, 09/10/2012 - 12:12 | 2778682 malikai
malikai's picture

Everything looks stagnated. Interesting to me was that little gap-down on the EURUSD cross from last night that has not been recovered yet.

Mon, 09/10/2012 - 12:13 | 2778689 kaiserhoff
kaiserhoff's picture

I don't understand Tyler.  Why wouldn't this be sustainable????



Mon, 09/10/2012 - 21:01 | 2780421 samcontrol
samcontrol's picture

your example sucks, why did we have to see that cruel pick. I used to like , until i realized i was a cruel idiot.

Mon, 09/10/2012 - 12:22 | 2778721 Goldilocks
Mon, 09/10/2012 - 12:32 | 2778755 john milton
john milton's picture
Spain breaks world record in unemployment according to ILO

Southern Europe is suffering from the highest proven unemployment in the world, country specific statistics provided by the ILO for Financial Times Deutschland show. Spain holds the world record with 24.5% unemployed, followed by Greece (22.3%). The ILO is responsible for drawing up and overseeing international labour standards.

Mon, 09/10/2012 - 13:17 | 2778917 PontifexMaximus
PontifexMaximus's picture

Who cares? Draghi will come up for it!

Mon, 09/10/2012 - 15:13 | 2779282 Flakmeister
Flakmeister's picture

Europe may indeed be leaking but....

Some of it is about to explode....


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