This page has been archived and commenting is disabled.

Spanish Bond Yields Hit 2012 Highs As Merkel Dismisses Eurobonds

Tyler Durden's picture


Spanish bond yields have leaked slowly higher all day but the very recent news from Merkel, talking on the G-20, that:


has pushed Spanish CDS and bonds to they highest closing levels for the year and just shy of intraday post-EU record wides. For context, these are 15 year high yields at 6.67% and while they 'feel' dramatically high, Spanish bond yields were over 12% in 1995 (but the current spread to Bunds is dramatically wider) highlighting why focusing on the spread not the yield is now critical. 5Y CDS are holding above 600bps again (record wides) and 10Y Spanish spreads (over Bunds) are at 527bps - near all-time (pre- and post-Euro) wides. The last two days have seen a dramatic surge of 38bps from Friday's close and 65bps from Monday's open as Goldman's 'long' short-dated Spanish bond bet continues to Corzine the Muppets.

Spanish 10Y yields at 2012 highs

and longer-term yields are well off record levels...

but this is because Bunds were far higher in yield then as this chart shows, we are at all-time record high spreads for Spanish debt...

Chart: Bloomberg


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 06/12/2012 - 09:05 | 2517512 lolmao500
lolmao500's picture

Merkel : lying biatch.

If it comes to a vote, they gonna vote to screw the German people.

But Merkel is going for the ``big`` screwing...


Aka... the united states of Europe where banksters controlled Germany rules it... and people get angry at Germany, not the banksters.

Hell it worked with WW1 and WW2... so why not WW3??

Tue, 06/12/2012 - 09:09 | 2517522 hedgeless_horseman
hedgeless_horseman's picture




*All your budget, gold, and grandchildren's productivity are belong to us

Tue, 06/12/2012 - 09:12 | 2517542 youngman
youngman's picture

This is the KEY....but it will never now the chips will just fall....there is no saving it anymore...its saving your friends and yourself...lots of fiat will be printed and it will all end up in someones pocket at the end....some will be winners or what I would call a thief.....others will lose all of it...what I would call an angry majority.....the winners will fly away with all the goods...

Tue, 06/12/2012 - 10:23 | 2517825 LeBalance
LeBalance's picture

oh baby, you KNOW this is what they are playing for right?  One EU to rule them all.  :)  USofEU

Tue, 06/12/2012 - 10:11 | 2517767 old naughty
old naughty's picture

Merkel says wrong time to dicuss...

"...Entitlements to support".

Tue, 06/12/2012 - 20:29 | 2520034 WageSlave
WageSlave's picture

What about the bases!?

Tue, 06/12/2012 - 09:12 | 2517538 GMadScientist
GMadScientist's picture

By way of metaphor: do you let the bank holding your car loan tell you how to drive?


Tue, 06/12/2012 - 09:13 | 2517551 GubbermintWorker
GubbermintWorker's picture

They do tell you to carry full insurance.

Tue, 06/12/2012 - 09:24 | 2517597 idea_hamster
idea_hamster's picture

So the ECB should force member countries to buy CDS on their own debt to cover the notional that they issue in any year that they fail to comply with the Maastrich 3%/60% limits?

In the rear-view mirror, it doesn't seem that crazy -- the problem is that those CDS would likely have been written by domestic banks (who were all AAA+wesome-rated at the time) making the counterparty risk issue paramount.

With car insurance, you can generally be confident that your car accident won't bankrupt the insurance company.  No so with the SovDebt CDS market.

Tue, 06/12/2012 - 09:28 | 2517619 GMadScientist
GMadScientist's picture

Shared risk requires a pool with some kind of distribution to wheel over the troublemakers but this ship of fools is too skewed.


Tue, 06/12/2012 - 09:37 | 2517649 lolmao500
lolmao500's picture

I mean, you think if there's a political union and a bank union there won't be bailouts from Germany to Greece?? Ah! Hell it'll be like in the US... for example, California ``bailing out`` Alabama... transfer of money...

So if Germans accept this BS to ``solve`` everything, they will give bailouts AND lose their political sovereignty...

So go ahead fools, get in this mess even more than you are now...

Tue, 06/12/2012 - 10:13 | 2517780 AnAnonymous
AnAnonymous's picture

Aka... the united states of Europe where banksters controlled Germany rules it... and people get angry at Germany, not the banksters.

Hell it worked with WW1 and WW2... so why not WW3??

It has to be US citizen Merkel. Could not be US citizen Germans. Cant be US citizen middle class, cant be the Germans and it can not doubly be the US citizen german middle class.

And wait for posts to explain that actually Merkel did not state that, but a low rank in her government or stuff like that.

Tue, 06/12/2012 - 09:07 | 2517523 monopoly
monopoly's picture

Will there ever be a day when the politicians, squids, and govt. hacks ever do something right, for the people. So sad. And gold just moved up 15 dollars, Huh?

Tue, 06/12/2012 - 09:07 | 2517524 HelluvaEngineer
HelluvaEngineer's picture

Oh.  Now I understand why futures just jumped.

Tue, 06/12/2012 - 09:11 | 2517536 junkyardjack
junkyardjack's picture

HFT tractor beams initiated again?

Tue, 06/12/2012 - 09:18 | 2517567 LouisDega
LouisDega's picture

Tyler has to confirm that. Until then, It's just an illusion man.

Tue, 06/12/2012 - 09:15 | 2517527 Mercury
Mercury's picture

In other words:

Don't put the cart before the horse. 
Put your liberty (sovereignty) on the table and then we'll talk about security.

At least one country in Europe understands that there's no free lunch here.

Tue, 06/12/2012 - 09:16 | 2517562 t_kAyk
t_kAyk's picture

"Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety."  ~ Benjamin Franklin

Tue, 06/12/2012 - 09:27 | 2517590 Mercury
Mercury's picture

 Indeed, although upon reflection I'd like to qualify my other statement by noting that in the trailing 52wk period Merkel has probably pulled more fancy toothpicks out of catered, artisanal sandwiches than a Muppet in heat.

Tue, 06/12/2012 - 10:07 | 2517751 gnomon
gnomon's picture

As the crunch intensifies it becomes ever more apparent that the majority in The West care little for Liberty unless it is wrapped in affluence.  And that they will discard Liberty in a nanosecond for just for a plausible promise of unearned affluence.  

In other words, "Give Me Liberty or Give Me Death" is morphing into a confused notion of Social Justice in which the hapless shills think that they will retain some shred of Freedom and Dignity once this pernicious and ultimately Stalinist concept is fully implemented.  



Tue, 06/12/2012 - 10:17 | 2517798 AnAnonymous
AnAnonymous's picture

US citizenism has always be about classwarfare, not freedom, truth and justice.

Burgeoning middle class ousting upper class on ground upper class used coercion, lies and injustice.

US citizens has always been about affluency.

Founding fathers did not wish to free their slaves because... money.

Tue, 06/12/2012 - 10:25 | 2517832 Nukular Freedum
Nukular Freedum's picture

No GW freed his personal slaves on his death, against the wishes of his household.

The reason there was not a general emancipation in 1776 was because the founders believed it would be too destabilising of the nascent state. Well, they were right.

Tue, 06/12/2012 - 10:17 | 2517799 old naughty
old naughty's picture

i wouldn't quote Ben F too often...He may be "speaking" of "a new normal".

And fast forward to today, oh sht.

Tue, 06/12/2012 - 09:10 | 2517531 junkyardjack
junkyardjack's picture

That's okay, I'm sure once they announce a bailout of Spain everything will be okay. Oh wait...

Tue, 06/12/2012 - 09:12 | 2517532 LongSoupLine
LongSoupLine's picture

Cue the various CB "intervention" rumors.

Futures just doubled because...well...uhhh...oh yeah, hope.

Tue, 06/12/2012 - 09:10 | 2517533 GMadScientist
GMadScientist's picture


Kindly asks that other Zooropa Collective members not skip ahead in the script.

Tue, 06/12/2012 - 09:14 | 2517550 youngman
youngman's picture

I would say if I was Merkel....send me your gold.....then and only then we will talk.....period

Tue, 06/12/2012 - 09:24 | 2517598 GMadScientist
GMadScientist's picture

If you were Merkel, you'd know you've got a financial sector that will collapse if the EZ goes 'kaput'.

Tue, 06/12/2012 - 09:37 | 2517648 markar
markar's picture

they absorbed E. Germany. They can absorb their financial sector--by printing very expensive DMs.

Tue, 06/12/2012 - 09:12 | 2517541 Mae Kadoodie
Mae Kadoodie's picture

What part of "nein" don't you understand?

Tue, 06/12/2012 - 09:12 | 2517544 moriarty
moriarty's picture

"For context, these are 15 year high yields at 6.67% and while they 'feel' dramatically high, Spanish bond yields were over 12% in 1995".

More context

1995 = "Spanish" yeilds

2012 = "Dogs breakfast" yeilds


Tue, 06/12/2012 - 09:15 | 2517560 lolmao500
lolmao500's picture

Except they have more debt, can get a bailout and don't control their economic policy (the ECB does).

So context is important.

Tue, 06/12/2012 - 09:26 | 2517609 moriarty
moriarty's picture

Fair enough but surely @ 12% they would not have had the property bubble they had and the consequent bust.

Like most here probably agree the PIIGS would not have had a snowballs chance in hell of the party they have had over the last 12 years if it was not for the Euro and we may not be in the depth of shit that we are.

Tue, 06/12/2012 - 09:35 | 2517640 lolmao500
lolmao500's picture

surely @ 12% they would not have had the property bubble they had and the consequent bust.

Indeed. All the fault of the ECB and their free money. All the countries in trouble right now are in trouble because of the ECB.

Tue, 06/12/2012 - 09:14 | 2517553 the not so migh...
the not so mighty maximiza's picture

    Tue, 06/12/2012 - 09:30 | 2517623 Al Huxley
    Al Huxley's picture

    Well, that's what they get for over-borrowing.  Now (as has been pointed out by ZH so many times) it's just a game of chicken between the borrowers and the lender.

    Tue, 06/12/2012 - 09:37 | 2517654 Vince Clortho
    Vince Clortho's picture


    Tue, 06/12/2012 - 09:14 | 2517554 lolmao500
    lolmao500's picture

    So... what good stock is there to short french bonds?

    Tue, 06/12/2012 - 09:15 | 2517555 monopoly
    monopoly's picture

    I think Ms. Merkel is feeling some pressure from the people. And we thought Italy would not be on our radar for another month or so. Geesh, that took about 24 hours. 

    NEXT! Step right up folks.

    Tue, 06/12/2012 - 11:46 | 2518196 Bunga Bunga
    Bunga Bunga's picture

    You guessed it. German taxpayers are already on the hook for 2 trillion in piigs funding. In Germany the social system has been reformed over the last 10 years (unemployed are forced into low wage jobs, retirement age was increased aso), real incomes are down. At the same time other Euro members  lived above their means and now demand even further funding of their welfare systems (or does France make a surplus to fund the reduction of their retirement age to 60 years?) on the back of harworking, productive people. If Merkel agreed to Euro-Bonds, it would be political suicide.

    Tue, 06/12/2012 - 09:15 | 2517558 Boilermaker
    Boilermaker's picture

    ES +8

    Go figure.

    Tue, 06/12/2012 - 09:18 | 2517568 hedgeless_horseman
    hedgeless_horseman's picture



    Sell it.

    Tue, 06/12/2012 - 09:25 | 2517605 HelluvaEngineer
    HelluvaEngineer's picture

    Likely right.  Someone probably wants to sell at a better price.

    Tue, 06/12/2012 - 09:23 | 2517591 fonzannoon
    fonzannoon's picture

    There has got to be an Italy/Spain metaphor here somewhere.

    Tue, 06/12/2012 - 09:23 | 2517593 Itch
    Itch's picture

    Gold got a little bit of a lift there, big bit of a lift actually, $15 so far...

    Tue, 06/12/2012 - 10:24 | 2517827 lakecity55
    lakecity55's picture

    It's still going up........

    Tue, 06/12/2012 - 09:25 | 2517600 rabbitusvomitus
    rabbitusvomitus's picture

    ...And the MSM talking heads are frantically avoiding the conversation... move along folks, nothing to see here..... you can't make this shit up!

    Tue, 06/12/2012 - 09:32 | 2517628 WaEver
    WaEver's picture

    Can someone tell mrs Merkel that when the Titanic sank, first class got pretty wet as well

    Tue, 06/12/2012 - 09:37 | 2517650 Quinvarius
    Quinvarius's picture


    I can't believe a German actually said that in public.

    Tue, 06/12/2012 - 10:14 | 2517787 AnAnonymous
    AnAnonymous's picture

    It cant be.

    Tue, 06/12/2012 - 10:39 | 2517884 falak pema
    falak pema's picture

    she is stating the obvious. 

    Tue, 06/12/2012 - 11:55 | 2518237 Bunga Bunga
    Bunga Bunga's picture

    It's logical. If they wan't to get funded by bonds were all Euro taxpayer are liable (especially the biggest Euro taxpayer population), they must give up their sovereignity on how to spend this money. Without giving up sovereignity  it's like California could spend Federal income tax revenues.

    Tue, 06/12/2012 - 09:41 | 2517666 dow2000
    dow2000's picture

    I slept so much better last night after ordering a monster box of silver eagles.

    Tue, 06/12/2012 - 10:35 | 2517866 tocointhephrase
    tocointhephrase's picture


    Tue, 06/12/2012 - 10:13 | 2517775 Jayda1850
    Jayda1850's picture

    I would hate to be all those banks(mainly spanish ones) that were cajoled into buying spanish bonds by the ECB with dirt cheap LTRO money. The $125bn bailout will be but a drop in the bucket for what is truly needed. They`ve fucked this up to no end.Yields above 8% by the end of the month.

    Tue, 06/12/2012 - 10:29 | 2517842 lakecity55
    lakecity55's picture

    One Ring to Rule them all.....

    And in the Darkness bind them.

    Tue, 06/12/2012 - 10:46 | 2517907 falak pema
    falak pema's picture

    In a crooked market a crooked german tries to fence off the crooked gangsta banksta cabal at the expense of euro sheeple. Its a crooked world and its called Oligarchy market reality; as long as it employs financial weapons of mass destruction; aka Cds derivatives, then don't expect any rationality from anyone. Its a race to the bottom as every crook hangs on to his own jewels, blaming the other for the Titanic slide, all the while he drills holes into the ship hull to make a fast buck on the side. What a merry ride.

    Tue, 06/12/2012 - 11:02 | 2517990 Snakeeyes
    Tue, 06/12/2012 - 11:16 | 2517998 slewie the pi-rat
    slewie the pi-rat's picture

    apparently angela may have heard that the banksters could end play her within two weeks by proposing the financial sleight-of-handling thePeople without the political structures in place

    so she's addressing that here

    this severly limits the marioECB -led planning committee which will report back on/about the 20th of june since there is no political structure now in place which would even lead to deposit insurance on the crooked banksters' rip0ffTM casinos

    politically and thru the internets even the banksters may be realizing:  a shitload of banks just gotta go?

    those would be rothschild & rockefeller banks and banks of interests aka theCityTM and their zombie capital

    but there really is no hurry

    we actually could muddle along in these messes for another decade and just try to keep the checks in the mail w/ZIRP and paper ponzi games:  markets screwed down tight

    the politics and the awakenings involved are the media we are using are not of 2008 or 2011, no matter how uncomfortable people are with the changes

    since most individuals have no intellectual concerns beyond the new i-flavor and making sure nobody thinks they didn't learn about the flying spaghetti monster, all the propagandists are caught in their own molasses

    herrSchuable spoke of being advised by diplomats in his last fart;  so we know that these moronic shitheads are now working overtime to maintain the staus quo behind new, improved boilerplate, sets of ambiguities, and illusions projected from behind the curtain

    angela is in no hurry;  austerity takes a while to cuddle up to when people are still so happy with the pretentions of yesteryear

    angela doesn't care, imo;  others may not know how to keep the water running and the lights on, but germany does

    and yes, germany is in this EU thingy, too;  but not in the BK crowds

    the pols are starting to say to the rothschild and rockefeller empire:  we think you guys are full of fuking shit, balance-sheet wise;  in other words, they are tired of kissing the asses of zombie wealth marked to unicorn droppings;  they have other constituencies beside pig-men

    so the banksters hafta consolidate and liquidate their murderous  interests with new money created by indebting you and me and our moronic children or diluting our "money";  but our blessed oligarchs should be clear and cashed out now, so things can be marked down in bigger batches?

    they are now in the process of trying to tell us how much we owe them already

    it is an election year and they hafta try to do it with a straight face or just let the junkster fly with it all which is probably the best plan, overall, again...

    the chairsatan's in no hurry;  everything is screwed down tight no matter what chicken little thinks;  he and slewie and angela understand austerity;  we can see how interestedCongress is, too!

    i guess people are waitng for france to realize what a big dill it is sucking...

    gBrit has abandoned all hope and gone turbo-P0M0;  they are gonna discover the outer limits of debt-loading thru centralBankstering;  altho the swissies are doing their cern-based best to bag the bankrupt BiCheZ first, they don't have the magnaCarta to destroy...

    fungicide was full of run and breezed the 5AM 5f. handily;  this horse is a monster;  trust me

    so there is quite a bit of humor to go with the radiation levels here again today, comrade BiCheZ!

    Tue, 06/12/2012 - 21:07 | 2520094 StychoKiller
    StychoKiller's picture

    Ain't nuthin' like the real thing, baby!  IOW, looks like yer clonez have fallen (and they cain't get up!) :>D

    Tue, 06/12/2012 - 11:11 | 2518030 carlnpa
    carlnpa's picture

    Merkel will do whatever it takes to ensure a devalued euro against other currencies.  This ensures the German production machine maintains its artifically low trading advantage in the world markets. 

    Germany doesn't give one shit about the rest of europe, only itself and that which is to its greatest advantage.


    Do NOT follow this link or you will be banned from the site!