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S&P Futures At Day Session Lows As German 2Y Hits Record 'Negative' Yield
As Europe opens, S&P 500 e-mini futures (ES) have given up all gains for the day and are back below yesterday's day session lows (down 9pts from the close). German and Dutch 2Y interest rates just hit record lows at -0.021% and 0.033% respectively (and Swiss 2Y is back at -35bps just off its lowest ever). Major AUD weakness following its worst of the year drop in employment is impacting carry pairs (notable JPY strength) and the EURUSD is back at yesterday's lows - which is pushing the USD up to week's highs and dragging commodities lower (with Silver and WTI dropping the most). Treasury yields are leaking lower but remain well off post-10Y-auction spike lows for now. Meanwhile - Italian and Spanish sovereign bond spreads are modestly lower. This seems like a combination of technicals from CDS-cash basis traders stepping in at notably wide spreads as well as the considerable decompression in subordinated bank spreads relative to senior/sovereigns - which is/was a popular trade and seems to have gathered steam once again as the Spanish MOU is leaked (and as we suggested Subs get 'bailed-in'). European credit remains markedly underperforming European stocks post EU-Summit, but the stocks seem to be playing catch-down for now today.
Subordinated bank spreads in Italy and Spain are decompressing rapidly...
while sovereigns are maintaining the modest strength (especially odd in context to EUR weakness) but remain wide still of post EU Summit opening levels (with Portugal deteriorating rapidly)...
though by the 'cheapness' of Spanish bonds relative to CDS (the light blue 'basis' line), we would suspect this is just RV flow and not renewed real money buying - which helps explain Italy's outperformance in the last week or so - since the basis compressed so much (black)...
and financials - expectedly so - are leading the weakness - but credit overall is considerably weaker than stocks (dark blue) seems to believe they should be...
But S&P 500 futures have lost all of the afternoon's post-FOMC plunge rampfest gains...
Charts: Bloomberg
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<= Looks like Simon Potter has not yet learned how to levitate ES overnight like the "old master" Brian Sack.
<= BIS must be on vacation in Italy or something.
The closing ramp up is more dramatic on a down day.
yep. two thursdays ago was almost like performance art. sad, predictable performance art that stimulated the addiction neurological pathways to produce a reward. we're at the point where i half expect the Times Square video board, everyday at 2:30 sharp, to broadcast Louie yelling "i'm going to dip my balls in it!" as the green light for an insane rampfest.
Looks like he is learning quick, futures heading towards green pretty fast. Lots of talk about how deposits at the ECB have dropped substantially since the rate cut. I wonder where it went. Bunds?
Off topic but, does anyone know what the coal subsidies are in Spain?
eu and china fudge data in.
Cash below my pillow...0.0000 %!*
Minimum of 20 million dollars, below that interest rate I offer is -0.2 %.
the trading this past week was about the most broken I have ever seen it. the algo's are really destroying the us capitial markets. destroying trend lines, going a bit past the line to trigger buy orders then selling. a f'ing disaster. they wonder why people elave the markets, well it's because of this shit. when the vast majority of trading doesn't hold overnight it destroys the structure of the system
Ascending ES lower trend line from 6/4 breached this morning at 1329 (now 1325). 200DMA at 1308. My guess PPT becomes CYA team before lunch.
Nagtive yield, falling gold ... where will I put my money?
Put it into gold shorts.
the negative yield could also effect options ... Binary Options Daily Analysis
humpty dumpty sat on the wall, humpty dumpty took a big fal.
..Humpty Dumpty was pushed.
humpty dumpty sat on the wall, humpty dumpty took a big fal.
High yield bonds seem to be holding up better than equities and need to play its own catch up
Hyperjapanization. No- one needs your stinkin fiat unless you pay us to take it.
What the fuck is the point of investing to these instruments when simply by HOLDING the money would be better?!
Too much money chasing too little safety.
Holding the money is OK if you only have the so much that will fit under a matress. However European banks can't find matresses large enough. Better to pay the Germans to look after it than to entrust it with those Mediterranean layabouts. They will blow it all on Ouzo and hashish and bung-bunga parties.
SP500 looks poised to break channel support.
http://bullandbearmash.com/index/sp-500/daily/
The Dow broke channel support yesterday.