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Spanish Yield Curve Inverts Most Since 1994
The spread between Spanish 2Y and 10Y bonds has dropped to record lows as the yield curve inverts most since 1994. Troughing intraday at -12bps at its most inverted, today's as-good-as-failed Spanish bill auction sends an ugly message to the market that risk appetite is non-existent. At -5bps, if we end today at this level, it will be the first inverted close since August 1994.
Intrday of the last 20 days - we dipped inverted intrday on 11/9 and 11/10 but never closed.
Longer-term Spanish 2s10s differential is its most inverted since August 1994.
Chart: Bloomberg
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This is looking more and more like the Greek 10/2's everyday...
Tomorrow, France.
Today the Giant Squid (broke through 90 again). Down -46.5% YTD. Still glad they are a bank?
This is funniest thing today: Get this -
MP launches tear gas attack in South Korea parliament over US trade dealhttp://www.youtube.com/watch?v=pOpFxNxZ6ME
Nary a one donned and cleared a gas-mask. Other than the guy at the podium who just stood there and ignored it, how can these people call themselves leaders?
/mock outrage
Well, does the short end come down or the long end go up from here...
and what does that do for Spanish finances?
Let me see...
They started the year at 170+. Truly amazing. Die squid, die!
It's dead, Jim. Time to throw it in the Paella.
Waiter, there's a failed bond auction in my punchbowl....
And a Klein Bottle in my salad!
"C'mon, Baxter! You know I don't speak Spanish." - Ron Burgundy (Will Ferrell) to his dog in Anchorman
Spanish: It's the new Greek.
I learned it from a book. --Fawlty Towers moose head scene
http://www.youtube.com/watch?v=khgpg-9TjVM
Bark twice if you're in Milwaukee!
Why don't you go back to your home on whore island?
You ate an entire wheel of cheese? That's amazing. . . I'm not even angry
I blurred my eyes. Looks perfectly healthy to me.
Yo necesito barras de oro, para no quiero mierda de Euros.
David Faber is reporting this right now...he must troll here at ZH for news.
They read, they just don't talk about it.
Ive even heard them twice in the last year say "some blogs are writing...." when it was clearly zero hedge and zero hedge alone.
Yes, it's funny.
Karl Denninger is a big ZeroHedge camp follower. He used to say 'props to ZeroHedge' but then he was following ZH so many times, it got embarrassing for him.
So now Denninger writes his own piece, doesn't mention ZH gave him the story idea, and tries to link to whatever source might be there for the ZeroHedge article.
Quite a number of ZH commenters have said they were banned from Denninger's comment forum at one point or another ... sometimes for things that Denninger himself said much later.
After reading his book all i can say is that whatever his other failings might be, his belief in mathematics makes him far too rational for our times.
If he'd only listened to Mises, he'd know there's no math to be had for a world filled with subjective valuations expressed in pursuing human goals.
And if he'd listened to Rothbard, he'd know the closest thing one can do to mathematical analysis is to rank these personal valuations in order of desire, compare that to their current prices, then act in manner to maximize utility while meeting your needs.
But no, let's play pretend scientist instead.
Mathematics is worthless in a system that has human variables, especially when those variables know about the math, and create an infinite feedback loop.
This is why good economists don't bother with complex equations, and rely on their inherent understanding of how people think and act when presented with different sets of data and dilemmas.
Ay che economia
Pricing like it's pre-zeuro. Euro has failed massively and only the idiots in Brussels like the unelected mao-extremist Mr Barroso have "CONfidence" in this nightmare. Have to say i'm really surprised that it took SO LONG for the "markets" to realise this. Euro is an economic prison for all of the countries involved. Even for Germany it has become a prison now that the ugly truth of the political utopia is surfacing and everybody wants the Germans to pay their debt and deficits. No amount of continuous bail outs in various forms will change the reality. Euro MUST be broken up voluntarily or it WILL get broken up by force. It seems that the eurofanatics are willing to destroy everything and put hundreads of millions of people at risk in order to chase their broken dream. I only hope they will wake the f*ck up and admit their pet project has failed and start planning for return to old currencies.
Be of good cheer. Today is BlackRock Breakdown Day! Unless, of course, Larry Fink can get some traction with the StuporCommittee to write in some fine print "Making Pension Fund Managers Buy Euro Debt."
Just a month ago, the EU was working on a plan to save all of Europe with the EFSF. Equities and the Euro surged on the brilliance of the European overlords. In one short month, the entire world knows the EFSF is DOA and couldn't have a sucessful bond auction without buying their own bonds. Contagion has now infected the core members as the whole experiment continues to unravel. Where will we be in another month? Gonna be some entertaining holidays.
How could contagion not affect the core.
The core and periphery are one unit.
Yields will converge yet again, but in the wrong direction once everyone figures out this is just a shell game without a pea.
daaaaaah this is bullish right?
Now that the entire world has realized that the ECB and the EU are just a poorly manufactured pirated copy of the Fed and the USA it appears everyone is going back to the brand name merchandise.
Chimerika rules!!!!
We keep bouncing off the 50% retracement of the rumor rally. I think the PPT have drawn a line in the sand.
Starting to get interesting and real.
Bloomberg:
Wall Street Unoccupied With 200,000 Job Cuts
QUICK!!! WE CAN STILL SAVE EUROPE!!!!
EVERYBODY HOLD EACH OTHERS HAND AND SING CUMBAHJAH!!!
Am shortly heading downtown to meet a Spanish friend at a Brussels bar, where I will order a half-litre glass of beer to start ... I'm doing my part for the EU stimulus programme!
Since you'll be "working on a buzz," do you have to pay VAT, too?
Nice job using italics so people can't junk you, spammer.
So is this what Conservative wins are supposed to do?
Con La Muerte En Los Talones
http://www.youtube.com/watch?v=F_mlyEhfmbU&feature=channel_video_title