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Spanish Bond Yields Pass 6% For First Time Since August
There is that thing we said about the European "communicating vessels/whack-a-mole" - the second one is down, several others pop up. Today, it is Spain's turn, whose 10 Year bond yield just passed 6%: the first time it has done so since August 5. The catalyst was the discovery earlier that Spanish bank borrowings from the ECB rose to €76 billion ($104.1 billion) in October, the highest level in more than a year, as the ECB remains the LOLR contrary to Jen Weidmann's claims to the opposite. So which bonds does the ECB buy next? When we said last week that Mario Draghi should hire all the fired bond traders from UBS, RBS, HSBC and Jefferies we were not kidding.
Intraday: take off
And longer term:
charts: Bloomberg
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Well that's got to be bullish. Everything else is.
Hollywood could not have written a better script as soon there will be three Marios
Mariano Rajoy: master of ambiguity who is likely to become Spain's PMhttp://www.guardian.co.uk/world/2011/nov/11/mariano-rajoy-profile-spain
Hollywood understands reality better than the Eurozone does.
Everything is under control.
Yep, violins are still playing, people dancing and the bar is open. Nothing to see here, we'll have a safe margin when we pass the iceberg ahead. Another Daiquiri, sir?
'When we said last week that Mario Draghi should hire all the fired bond traders from UBS, RBS, HSBC and Jefferies we were not kidding.'
Because if there is anything we need more of in the world, it's bond traders.
olèèè!
Things must be getting bad.
Everytime Warren is on CNBC flapping his chops about how fantastic stocks are financial markets are on the cusp of falling apart.
This is why intervention instead of resolution(default) never works. The only solution is to eject the PIIGS from the EU and allow them to rejoin the EMU when their defaults are settled and if the nations wish to rejoin based on actual strict terms of compliance.
Of course that means France will eventually be kicked out also.
That's a lot of gold you're kicking out.
Point of no return as well ? These PIIGS are holding up about as well as Peter Brady wearing a mustache on a date:
http://www.youtube.com/watch?v=u_jfJV6I7DQ
Italy 10yr at 6.66%
The official 70% debt-to-GDP ratio of Spain is a joke. First their official GDP shows still modest increases while their unemployment skyrockets (45% of youth unemployed). The debt is also underestimated, as it is either not yet in the books (for example a caterer invoice to a local municipality can be locked in a desk for years) or the debt is hidden in public companies.
Crash goes that domino. Portugal is next no doubt.
Awesome PimpCO is a buyer.
Blackstone buying Italian debt and PimpCo buying Spanish debt.
All based on the thesis that they are TBTF. Worked out so well for Corzine.
How do you know PIMCO's buying?
The credit markets must be reading different news feeds than the stock markets.
Sink a bore, bitchez!
The whole EZ scenario reminds of someone trying to juggle balloons. Have you ever tried it? It looks easy until one gets out of place, you have to run over and prop it, then you turn around and the other ones are falling and you have to run over and prop those up…eventually one hits the floor.
Shouold be anonter good day for stocks. DAX and CAC barely negative on the day. Once their markets close, the U.S. markets should end up close to 1% on the day. I'm so glad I'm ignoring all the irrelevant EZ news and have stopped wasting my time completely with that noise.
This is all noise. Europe doesn't have a prayer of surviving in tact. Just kicking the can down the Autobahn.
Merkel Calls For “New Europe” – European Sovereign Yields Exhibit Enormous Variation
http://confoundedinterest.wordpress.com
when the bond is above 6%, all these countries are insolvant including US. this is real shit, and the day is full of transactions with this number, not some abstract number that dont matter. At this point, whether they like it or not, the market will do it for them. If someone wants to buy anything from these countries, they better be prepared, cuz it is likely to have a Jon superman Corzine moment in a short while.
A new government in Span as well? This is nothing short of debt revolution.
Communicating vessels is a name given to a set of containers containing a homogeneous fluid: when the liquid settles, it balances out to the same level in all of the containers regardless of the shape and volume of the containers. Thanks.
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