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Europhoria Officially Over: Spanish 10Y Breaks 6% The Wrong Way
We warned that the shine was coming off Draghi's rally late last week but since mid-morning on Friday, Spain's 10Y spread has risen a very notable 36bps and the 10Y yield has just broken back above 6% for the first time in over two weeks. However, the seemingly impregnable short-dated market has started to crack. Spain's 2Y has also broken back above 3% - up over 50bps in the last 3 days! It seems the reality of the cash position, as we described in detail last night, is perhaps starting to outweigh the unlimited-but-capped open-ended-but-conditional support that the ECB supposedly has.
10Y Spain breaks back above 6%...
while 2Y Spain is quickly giving back its Draghi-induced gains...
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ECRI's Lakshman Achuthan Says US in Recession Now; That Makes Three of Us
•John Hussman announced on September 10, 2012 in Late-Stage, High-Risk "I continue to believe that the U.S. joined an unfolding global recession, most probably in June of this year."
•Lakshman Achuthan stated on September 13, 2012 he thought the recession had started (not just one was coming)
•I stated the same thing on September 7, 2012 but that does not necessarily make me first. I have not seen everything this group has said, and there could be others as well.
http://globaleconomicanalysis.blogspot.com/2012/09/ecris-lakshman-achuthan-says-us-in.html
With unlimited bond buying on both sides of the pond already stated, what will they do for an encore to lower yields and get the S&P to 1500...1550...1600
With unlimited bond buying on both sides of the pond already stated...
Hard to know if we should zig or zag.
If one measures inflation the way we did in the 80's (SGS), we never got OUT of recession, real growth has been declining for some time...Brodsky (OBAMCO) had a good piece on this several months back.
PRINT, you central bank MOTHERFUCKERS, print.
Edit from above: if you want to read the OBAMCO papers, go here: http://www.gata.org/node/10969
There are two parts to the 'Adult Approach' paper.
The perfect explanation for Ben and O's hail Mary last week.
No one expects the Spanish Inquisition....
Wrong way for Spain. Right way for investors.
WRONG!
Right way for Spaniards, Wrong way for fucking bankers.
SPAIN must be OUT of eurozone .... NOW !!!
Bad, very bad for bankers...upps !!!
More QE, more QE, more drug for bankers, more bonus for bankers, bankers are so special.... they need QE for working right, they need drug all the time, without drug bankers will be in a very large SHIT... ohhhh, ooohhh, poor poor bankers...or they call themselves "investors"? oh please, GTFYS!
Iceland......nuff said.
This is good news - but I'm really in the mood for Italian...
All according to plan, the dominoes will fall and the IMF will undoubtedly have a "solution" for the western world. hedge accordingly.
Law of deminishing returns -
QE 1 = 6 month rally
QE 2 = 3 month rally
QE3 = 2 day rally
Good work helicopter Ben
Anyone expected the markets to drop like they did in 2011. So lots of shorts - but wait a little and you'll see the shorts getting burned.
And Draghi/Spain and his bazooka:
In order to work as expected Spain must ask for a bailout - but Spain will refuse as long as the interest rates are low. So, rates must be up, Spain can ask for a bailout and then the bazooka comes into play to reduce the rates. No wonder rates will be pushed into the right direction.
Then go long Spanish 10yrs ... I dare you:)
I can hear the night rider theme playing even now as the printing press warms up....
BTPs down (price) even more right now
So the market does believe in Draghi's ECB bond buying announcement. And inflation.
Fucking hell,
Looks like it may all be bollocks as a good inside friend of a major bank told me this morning. You may as well trade on what colour hair blankfiend has tomorrow morning. If you know what I mean....
Buy a bond and get paid in Ben confetti or Mario Confetti.
Change is bullish!
No one can afford 'paella' anymore...
The bond vigilantes are asking for higher bribes.
Anyone who thinks that the same thing isn't going to happen to bonds here, thanks to Bennie & the inflationary injets, is kidding themselves.
Can't we just skip Italy after Spain and get right on French bonds.
This incredibly slow train wreck is beginning to be boring.
AND A GOOD 2 WEEK IT WHERE!!!!
nice...
now eh... can I have the bill for that manipulation?
....
WHAT!!!!!!!!!!!!!!!!!?????????!!!!!!!!!!
this must be wrong....
1 TRILLION???!!!!!!!???
AND I DIDN'T EVEN GET A BLOWJOB FOR THAT?!?!
Note to Spain: Effective immediately, you should stop issuing "Letras del Tesoro", "Bonos del Estado" and "Obligaciones del Estado" and start issuing bonds under the title of "Agency Mortgage Backed Securities".....I hear there is strong demand for these for the foreseeable future.
Hurry, Draghi, Bernanke, print more money, devalue. Who in their right mind wants to hold ponzi currencies no like the Euro and US dollar is becoming.
Countries know the way to take down the US and Europe is not militarily, but economically. You bankrupt them, just like the Soviet Union!
This was expected. The banks are getting a bailout and will soon require more than the €100bn allotted. The government will not be able to finance itself with its best bond customers going down the tubes, and it needs at least €90bn between now and the end of the year:
http://dareconomics.wordpress.com/2012/09/06/actual-spanish-financing-ne...So....you're saying that my pesetas have a chance! YYYYES!
Breaking bad! Portugal spiked too,
http://confoundedinterest.wordpress.com/2012/09/17/unintended-consequences-of-the-feds-qe3-mbs-buying-program/
There is nothing to stop bond yields from rising now. The ECB plan is pushed to the background, and the weekend talks make it sound like nothing is going to happen until at least 2013. The markets smell blood and will push yields up until they force a crisis.