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Five Days Since The Spanish "Bailout": You Are Here

Tyler Durden's picture





 

With few (if any) natural buyers of Spanish debt (especially given the lack of CDS-cash basis now), Spanish bonds continue to crumble lower in price and higher in yield/spread. For the first time ever, 10Y Spanish bond yields have passed 575bps over Bunds - currently trading at 7.15% yield. Since the post-banking-bailout open, Spanish bond spreads have soared a remarkable 114bps and whether this is seen as the fulcrum security or Italian bonds (which are also deteriorating rapidly this morning), it would appear that just as Spiegel reports today from the G-20, via a senior EU official: "If Germany Doesn't Make A Move, Europe Is Dead".

European sovereign bond spread movements post Spanish bailout

 

Charts: Bloomberg

 


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Mon, 06/18/2012 - 08:22 | Link to Comment disabledvet
disabledvet's picture

"Bond. James Bond."

Mon, 06/18/2012 - 08:33 | Link to Comment maxmad
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This makes complete sense.... Just like somebody thought it was a brilliant idea to "paying for debt by creating more debt!"

Mon, 06/18/2012 - 08:36 | Link to Comment maxmad
maxmad's picture

Gee this is just like taking 5 braty kids on a long car ride.  As soon as you get one from stopping to cry and throwing a fit, then you get the next one throwing a fit... There is no solution, except stoping the car, kicking them all out, and continuing on...

Mon, 06/18/2012 - 08:50 | Link to Comment Chris Jusset
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The bond vigilantes are B A C K ! ! !

Mon, 06/18/2012 - 10:17 | Link to Comment caconhma
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It is just a matter of time before Germany will be bankrupt like the rest of the Euro zone countries.

May be it is the master plan by the Jewish Bolchevik Banking Mafia who took over the USA and EU.

Mon, 06/18/2012 - 08:22 | Link to Comment mrktwtch2
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and why is this a surprise??

Mon, 06/18/2012 - 08:23 | Link to Comment falak pema
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"If Germany Doesn't Make A Move, Europe Is Dead".

If Germany doesn't move Europe gets a new face! (fixed it).

Mon, 06/18/2012 - 09:14 | Link to Comment OttoMBMP
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"If Germany Doesn't Make A Move, the EUSSR Is Dead - and the people will rejoyce!!!!"

But I fear, they will "make a move", they always have. German politicians are paid to betray the German people. They are NWO puppets and will act accordingly.

Mon, 06/18/2012 - 10:26 | Link to Comment falak pema
falak pema's picture

ah the deadly dregs of Hitlerian Pangerman dream leave their legacy on Merkel's face, like a spurt of  old forgotten perfume, now considered poison ivy. And the American cabal use this nostalgia/germany-first strain as a recurrent wake up call to purge Allemania of all its uber-alles or mere independency penchants. 

"We have the technology, we have the base for future revival. But do we have the will? " Good question that Ost politiks could resolve if die westen faszination runs out of steam.

If only Merkel could grow cojones like Maggy did for her own deadly agenda that cured brit decadence but killed brit independence and popular class. But then we would be in another world sooner than the Oligarchy has scheduled it, in their desperate can kicking world of denial. 

Mon, 06/18/2012 - 08:24 | Link to Comment battle axe
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"If Germany does not make a move Europe is dead". Prediction: Europe is already DEAD.

Mon, 06/18/2012 - 08:29 | Link to Comment azzhatter
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If Germany makes a move, Germany is dead is more realistic

Mon, 06/18/2012 - 08:54 | Link to Comment Stock Tips Inve...
Stock Tips Investment's picture

I think the discussions within Germany revolve around whether to continue pumping money in Europe or preparing for the crisis they themselves. The size of the crisis in Europe is growing every week, and Germany knows that he has unlimited resources. It will be better for them to use their resources in their own economy?

Mon, 06/18/2012 - 08:25 | Link to Comment tomAsss
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if Germany makes another move, Europe is dead

Mon, 06/18/2012 - 08:35 | Link to Comment _mike123_
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if Germany makes another move, the German taxpayer is dead.

Mon, 06/18/2012 - 08:56 | Link to Comment Peter Pan
Peter Pan's picture

If Germany does not make a move, the free market can heal itself on its own.

Mon, 06/18/2012 - 10:22 | Link to Comment Caggge
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If Germany has a bowel movement, Spain, Italy, and Greece will fall out her ass.

Mon, 06/18/2012 - 08:27 | Link to Comment cossack55
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Last time Germany made a move Europe was dead.  Damned vampire continent.

Mon, 06/18/2012 - 08:27 | Link to Comment midtowng
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Euro can't survive Spain going under. The only question is how long they can keep kicking this can?

Mon, 06/18/2012 - 08:28 | Link to Comment Let The Wurlitz...
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Europe is dead already.

 

Mon, 06/18/2012 - 08:31 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

+1.2628

But back to your MSM derived hallucination...

Mon, 06/18/2012 - 08:37 | Link to Comment AnAnonymous
AnAnonymous's picture

Europe is dead already.
---------------------

Europe was a still born baby.

Mon, 06/18/2012 - 11:56 | Link to Comment akak
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Europe was a still born baby.

From which a Chinese Citizenism citizen probably made a delicious soup (with the addition of an appropriate amount of puppy meat, endangered shark fins, and the nests of certain rare birds).  After having consumed said fetus broth, our Borglike Chinese Citizenism citizen most likely promptly shat upon an oppressed Tibetan on a Chinese roadside, in true Chinese Citizenism fashion, before hitting the People's Liberation Opium Parlour and Internet Cafe for a hours-long spree of pro-Chicom time-traveling algebraic coconut denialistic online trolling.

Such is the eternal nature of fetus-slurping, puppy-munching, blobbing-up Chinese Citizenism citizens.

Mon, 06/18/2012 - 12:02 | Link to Comment Nukular Freedum
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(Sigh!) I think many people have concluded its a false flag operation already.

Mon, 06/18/2012 - 08:28 | Link to Comment valley chick
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Italian bonds (which are also deteriorating rapidly this morning)

bring it on!

Mon, 06/18/2012 - 08:31 | Link to Comment Village Smithy
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They make it sound as if Germany exists in another galaxy where prosperity is alive and well and they can just open the checkbook. They are in as deep as anyone, for the last 5 years at least they have been given IOUs for their exports and they are never going to be paid with real money.  

Mon, 06/18/2012 - 08:48 | Link to Comment reload
reload's picture

True enough, but China does not pay quickly for her imports either. In my field (agricultural chemicals) German manufactures find the Chineese infuriating and confusing to deal with. Their buyers of choice are in the UK and Russia. Lots of German exporters have been busy forging contacts in Russia of late. That is their future market, and in return Germany gets access to energy, and more importantly energy security. Merkel speaks Russian like a native, much closer German / Russian co operation must be a medium term possibility.

Mon, 06/18/2012 - 08:55 | Link to Comment cossack55
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I think their last non-aggression pact did not work out so well.

Mon, 06/18/2012 - 09:17 | Link to Comment OttoMBMP
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Well that was Molotov/ Ribbentrop.

Today in Germany we have .... Westerwelle!!!!!! Hahahahaha!!!

Mon, 06/18/2012 - 10:30 | Link to Comment caconhma
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The Molotov/ Ribbentrop Pact did not work because Stalin wanted the Entire Europe just for himself.

Stalin, not Hitler, together with Jewish Banking Mafia was the primary initiator of the WWII. Hitler was not a nice guy but please stop blaming him for all world crimes. Stalin, Roosevelt, Churchill, Mao, and Japanese were not any better.

 

Mon, 06/18/2012 - 09:09 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

Of course GErmany must pay for all of Europe's Cradle-To-Grave Welfare and early retirements.

It's only 'Fair", doncha know, since they produce so much, and do so well. Why should the GERMANS get to keep all that money for themselves, when the socialist pols can do so much 'Good!' with it, and buy so many votes elsewhere!

Don't you understand that these pols have hungry children, and mistresses to feed? What kind of a heartless, conservative bastard are you, anyway?

Mon, 06/18/2012 - 08:29 | Link to Comment q99x2
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Greeks lost their election. The banksters want a revolution and can't even force stupido Europe into one without starving them to death first.

Mon, 06/18/2012 - 08:29 | Link to Comment Donlast
Donlast's picture

Germany should out, with whoever.  Leaave the rest to a devalued Euro to sort themselves out.  

There is no reason not to come back later with help but lance the boil first.   

Then the markets will react to credible solution - and so will business round the globe. 

Mon, 06/18/2012 - 08:30 | Link to Comment virgilcaine
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The can has become too large to kick, the size of an oil drum.

Mon, 06/18/2012 - 09:00 | Link to Comment LeisureSmith
LeisureSmith's picture

Plus the cankicker has emphysema and his kickingfoot is worn down to a nub...but the crazy basterd keeps asking for more meth and a new boot.

Mon, 06/18/2012 - 08:31 | Link to Comment tomAsss
tomAsss's picture

btw. I dont get it ..

if Europe is so important , why China does not make move or USA

anyway ..I think they all must default , and sell their assets on market

after that we can have fresh start again

Mon, 06/18/2012 - 08:31 | Link to Comment Paul Thomason
Paul Thomason's picture

Despite recent market rally, internals are getting worse, not better - new update: 'Greece, SPX and 22 New Bearish Portfolio Positions!!'

Mon, 06/18/2012 - 08:32 | Link to Comment lizzy36
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One imagines that every G20 leak (eu based or not) is Geithner. 

Mon, 06/18/2012 - 08:33 | Link to Comment Alejandrito
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With the bank bailout, what is done is to transfer the losses of the banks to the balance of the state.

So the stock has risen and interest on bonds have risen.

 

http://agstock.blogspot.com.es/

Mon, 06/18/2012 - 08:35 | Link to Comment poldark
poldark's picture

If Italy and Spain were to leave the eurozone, they would probably also default on their foreign debt. Such an act would probably cause the European financial system to collapse – something that would ultimately reverberate in Italy and Spain, too. But the irony is that an Italian or Spanish exit would probably end up hurting France and Germany more than it would hurt Italy or Spain.

Mon, 06/18/2012 - 08:36 | Link to Comment virgilcaine
virgilcaine's picture

We could be at vix.. 30 in no time.. then 10 point increments thereafter onto 80+. My estimates are each 10 pt vix move equals - 100 pts on the sp.

nothing like fear in the mkts when it finally arrives.

vc

Mon, 06/18/2012 - 08:38 | Link to Comment tomAsss
tomAsss's picture

does any see any corelation with this

Spanish flu

http://en.wikipedia.org/wiki/1918_flu_pandemic

 

SPANIC FLU

Mon, 06/18/2012 - 08:37 | Link to Comment DutchDude
DutchDude's picture

If Germany makes a movie; it won't be a comedy...

Mon, 06/18/2012 - 08:55 | Link to Comment Incubus
Incubus's picture

Baking with ubermensch

Mon, 06/18/2012 - 08:40 | Link to Comment LeisureSmith
LeisureSmith's picture

Cascading Default Syndrome is highly contagious and there is no known cure...remember to burn the bodies.

Mon, 06/18/2012 - 08:40 | Link to Comment Ted Baker
Ted Baker's picture

BEHIND CLOSED DOORS:- THE TENSIONS AND FEAR OF AN EUROPEAN BREAK-OUT ARE MOUNTING WITH SNB AND BUNDESBANK HAVING NOT CLUE WHAT TO DO EXCEPT FOR COMMOM EURO SHORT-TERM BILLS AND BACKED BY PHYSICAL GOLD..... 

Mon, 06/18/2012 - 08:43 | Link to Comment booboo
booboo's picture

Europe sleeps wit da fish

Mon, 06/18/2012 - 08:43 | Link to Comment vocational tainee
vocational tainee's picture

when Germany moves ,it hurt´s

Mon, 06/18/2012 - 08:49 | Link to Comment savagegoose
savagegoose's picture

WTF let France make the move! theyre all for pissing in the wind. Only moveGermany needs to do  is GET THE FUCK OUT NOW.

Mon, 06/18/2012 - 09:18 | Link to Comment OttoMBMP
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The French cannot move! They are all retired or on holidays!!!

Mon, 06/18/2012 - 08:55 | Link to Comment Zgangsta
Zgangsta's picture

It's No Good Captain She's Breaking Up!

Mon, 06/18/2012 - 09:08 | Link to Comment Plumplechook
Mon, 06/18/2012 - 09:27 | Link to Comment spanish inquisition
spanish inquisition's picture

Maybe it's me, but I will go with the not smart people trying the same old thing (history rhyming). The long term plan seems to crush Germany and it's economy by saddling it with some or most of the bankers debt. It's been done twice already and as an industrious people they have hunkered down and payed it off. It will slow them down allowing the periphery to rebuild and gain some equal footing until next time the need to crush Germany arises. (The plan is to give the bill to Germany either with or without the Euro) As for the rest of the world..

There is no Japan to help out, they shot their wad on nuclear energy and you can hear their death rattle around the world. So right now, no war and destruction in Europe because Germany can't rebuild and pay off everyone by itself. ME wars are still good for destruction, you get rebuilding and resources. Of course, Russia and China are getting tired of US imperialism (sorry, killing those that hate the US for their freedom) which could start new cold war and be bad for invading in the ME. Something big is needed to continue the war in the ME, the CIA would need to launch a real missle at Israel and blame Iran. Not the bottle rockets tallied as missles, a real one that would hit a symbol to rally the world troops like the "terrorists" did in the US. A breakthrough in negotiations is the last thing bankers need in Iran. The Iran window has only a couple of months left and a US president wanting to get reelected would need to pull the trigger before the end of summer.

Of course this is pretty fringe stuff, but "desperate times" and "no bounds to human stupidity"... This has been your man in the street geopolitical bankster roundup.

Mon, 06/18/2012 - 10:16 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

G20 gets it!

who coulda node?

Mon, 06/18/2012 - 10:32 | Link to Comment Snakeeyes
Mon, 06/18/2012 - 10:35 | Link to Comment erheault
erheault's picture

The euro was a marrage of the odd couples trying to replace the dollar but a mix of rich countrys and poor countyrs could never work out,  Perhaps we could send King Oslamma to europe to straighten out their problems by dictates he could end it in a mater of days and still have time for a golf game. 

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