Spain Election And Benchmark Switch Rouse Duds, As Country Pays Record Yield In Bill Auction

Tyler Durden's picture

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bank guy in Brussels's picture

« After ... kicking the can down the road for too long - policymakers have hit the proverbial wall. They have suddenly lost the wherewithal to connect foot to can. »

- Economic analyst Doug Noland, 'Euro exits beckon', Asia Times Online, 21 November 2011

http://atimes.com/atimes/Global_Economy/MK22Dj01.html

NotApplicable's picture

The instant they can't kick the can, they'll start shooting it.

youngman's picture

And the USA bonds are still AAA....lol....and money market funds are selling their European bonds....and buying US treasuries....lol...and of course gold and silver are down...if I wasn´t so hungover..I´d be drunk...this world is crazy

disabledvet's picture

obviously it doesn't matter what the "ten year does" if the ECB has lost control of the over night--let alone the three month. an inverted yield curve is a guarantee of a massive recession--which in Spain as additive to the 20 percent unemployment which for some reason isn't considered recessionary in the first place. so, sure "blame the media"--but obviously that's a symptom of the total loss of control of monetary policy and therefore only helps your case.

Carlyle Groupie's picture

Here comes the pain.

HD's picture

Come on global economic collapse...baby needs a new pair of shoes!

Curtis LeMay's picture

Anyone know if the ECB is still sterlizing these bond purchases? Or is that now over with, overwhelmed by events?

If it's not sterilizing, it's got to have at least a quarter trillion euros, on paper, in its safety deposit boxes...

Peter K's picture

Yea, can't find the info anywhere. ECB used to put it out Monday's. Last read was 194b EURO but as of the close of business Tuesday before last. Before the Eurogedon of 7.38 Italian 10yrs. Could it be that they are still counting:)

oogs66's picture

The old switch the ten year bond benchmark trick ? A very cunning plan

youngman's picture

When in trouble.....CUNN

TheLooza's picture

Nice move on the bond benchmark, El Spaniard.  Like my grandma always used to say, "if you ain't lying, you ain't tryin."  She also told me, "If you ain't cheatin', you already beaten."  God rest her soul.

Eurodollar's picture

Come on implosion! I want my mansion by the mediterrean sea close to for free. (No disrespect to all who bought in 2006-2007.)

GCT's picture

This is what happens to bonds when governments have a default but it is not a default.  You start paying real interest rates. I imagine the idiots running the EU are pissing in their pants over their decision right now about the Greece haircuts not being a default.

wagsthadog's picture

In other news...

"Spainish 'Space Conquistadores' gearing up to colonize otherworldly undeveloped planets to attempt to end crisis."

That's the only hope left!