This page has been archived and commenting is disabled.

Spanish Yield Curve Inverts Most Since 1994

Tyler Durden's picture




 

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

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 11/22/2011 - 11:40 | 1902566 Robot Traders Mom
Robot Traders Mom's picture

This is looking more and more like the Greek 10/2's everyday...

Tue, 11/22/2011 - 11:55 | 1902623 Popo
Popo's picture

Tomorrow, France.

Tue, 11/22/2011 - 11:59 | 1902634 hedgeless_horseman
hedgeless_horseman's picture

Today the Giant Squid (broke through 90 again).  Down -46.5% YTD.  Still glad they are a bank?

Tue, 11/22/2011 - 12:00 | 1902642 PY-129-20
PY-129-20's picture

This is funniest thing today: Get this -

MP launches tear gas attack in South Korea parliament over US trade deal

http://www.youtube.com/watch?v=pOpFxNxZ6ME

Tue, 11/22/2011 - 12:36 | 1902752 NotApplicable
NotApplicable's picture

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

Tue, 11/22/2011 - 12:43 | 1902779 Harlequin001
Harlequin001's picture

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...

Tue, 11/22/2011 - 12:01 | 1902644 redpill
redpill's picture

They started the year at 170+.  Truly amazing.  Die squid, die!

Tue, 11/22/2011 - 11:41 | 1902567 slaughterer
slaughterer's picture

It's dead, Jim.  Time to throw it in the Paella.  

Tue, 11/22/2011 - 11:47 | 1902592 Jim in MN
Jim in MN's picture

Waiter, there's a failed bond auction in my punchbowl....

Tue, 11/22/2011 - 11:49 | 1902603 redpill
redpill's picture

And a Klein Bottle in my salad!

Tue, 11/22/2011 - 11:46 | 1902591 Tsar Pointless
Tsar Pointless's picture

"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.

Tue, 11/22/2011 - 11:48 | 1902597 Jim in MN
Jim in MN's picture

I learned it from a book. --Fawlty Towers moose head scene

http://www.youtube.com/watch?v=khgpg-9TjVM

 

Tue, 11/22/2011 - 11:54 | 1902622 Robot Traders Mom
Robot Traders Mom's picture

Bark twice if you're in Milwaukee!

Tue, 11/22/2011 - 12:04 | 1902653 a growing concern
a growing concern's picture

Why don't you go back to your home on whore island?

Tue, 11/22/2011 - 12:36 | 1902753 RonBurgundy
RonBurgundy's picture

You ate an entire wheel of cheese? That's amazing. . . I'm not even angry

Tue, 11/22/2011 - 11:48 | 1902598 SHEEPFUKKER
SHEEPFUKKER's picture

I blurred my eyes. Looks perfectly healthy to me. 

Tue, 11/22/2011 - 12:05 | 1902611 AssFire
AssFire's picture

Yo necesito barras de oro, para no quiero mierda de Euros.

Tue, 11/22/2011 - 11:52 | 1902612 Captain Kink
Captain Kink's picture

David Faber is reporting this right now...he must troll here at ZH for news.

Tue, 11/22/2011 - 11:59 | 1902641 midgetrannyporn
midgetrannyporn's picture

They read, they just don't talk about it.

Tue, 11/22/2011 - 12:04 | 1902652 topcallingtroll
topcallingtroll's picture

Ive even heard them twice in the last year say "some blogs are writing...." when it was clearly zero hedge and zero hedge alone.

Tue, 11/22/2011 - 12:13 | 1902680 bank guy in Brussels
bank guy in Brussels's picture

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.

Tue, 11/22/2011 - 12:20 | 1902705 magpie
magpie's picture

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. 

Tue, 11/22/2011 - 12:43 | 1902780 NotApplicable
NotApplicable's picture

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.

Tue, 11/22/2011 - 12:52 | 1902809 tmosley
tmosley's picture

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. 

Tue, 11/22/2011 - 11:51 | 1902613 Caviar Emptor
Caviar Emptor's picture

Ay che economia

Tue, 11/22/2011 - 11:55 | 1902625 Dick Darlington
Dick Darlington's picture

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.

Tue, 11/22/2011 - 11:55 | 1902626 Cdad
Cdad's picture

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."

Tue, 11/22/2011 - 11:56 | 1902628 Jayda1850
Jayda1850's picture

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.

Tue, 11/22/2011 - 12:01 | 1902646 topcallingtroll
topcallingtroll's picture

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.

Tue, 11/22/2011 - 11:57 | 1902631 the not so migh...
the not so mighty maximiza's picture

daaaaaah this is bullish right?

Tue, 11/22/2011 - 11:58 | 1902638 topcallingtroll
topcallingtroll's picture

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!!!!

Tue, 11/22/2011 - 12:05 | 1902659 firstdivision
firstdivision's picture

We keep bouncing off the 50% retracement of the rumor rally.  I think the PPT have drawn a line in the sand.

Tue, 11/22/2011 - 12:07 | 1902663 monopoly
monopoly's picture

Starting to get interesting and real.

 

Bloomberg: 


Wall Street Unoccupied With 200,000 Job Cuts

Tue, 11/22/2011 - 12:09 | 1902668 Sudden Debt
Sudden Debt's picture

QUICK!!! WE CAN STILL SAVE EUROPE!!!!

EVERYBODY HOLD EACH OTHERS HAND AND SING CUMBAHJAH!!!

 

Tue, 11/22/2011 - 12:19 | 1902701 bank guy in Brussels
bank guy in Brussels's picture

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!

Tue, 11/22/2011 - 12:45 | 1902784 NotApplicable
NotApplicable's picture

Since you'll be "working on a buzz," do you have to pay VAT, too?

Tue, 11/22/2011 - 12:21 | 1902710 imsaul0968
imsaul0968's picture

For those of you who invest in an IRA or for long term goals, theres a better approach than buy,hold,hope. Stocks follow the economy so analyzing the economy, specifically the factors that are "leading indicators" and having exposure to equities only when the economy is headed in the right direction and avoiding equities in favor of safe haven baskets is a much more logical approach. And missing the major drawdowns is the only way to help ensure meeting your goals.  If you are interested in investing in a portfolio that tactically invests in equity and safe haven baskets via ETF's automatically, please email me at:

eclark@breakaway-partners.com

and I'll add you to the weekly market commentary & portfolio update distribution list.  Its free to add you and you can follow along our model and our views.  We have been RISK-OFF since 6/30 so have missed all this wicked volatility. Currently invested in short duration treasury baskets as flight to safety drives interest in our debt. 

Tue, 11/22/2011 - 12:58 | 1902829 tmosley
tmosley's picture

Nice job using italics so people can't junk you, spammer.

Tue, 11/22/2011 - 13:05 | 1902868 hawks5999
hawks5999's picture

So is this what Conservative wins are supposed to do?

Tue, 11/22/2011 - 15:30 | 1903670 getplaning
Do NOT follow this link or you will be banned from the site!