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Swiss 2 Year: -0.38%

Tyler Durden's picture


Correction: the below bond was the Swiss 10 year. 2 Year was -0.38%, still a record. Pretty bad either way, and what is 14 bps between friends.

The record Swiss nominal 2 year yield is presented without commentary (but in conjunction with the previous post showing an outflow of just why of €500 billion overnight from the ECB as a clue where the money is going).

* * *

Good luck SNB: you will need it.


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Thu, 07/12/2012 - 06:58 | 2609226 GeneMarchbanks
GeneMarchbanks's picture

SNB is on stand-by!

Thu, 07/12/2012 - 07:16 | 2609279 Stoploss
Stoploss's picture

That ought to be just about it, for the Euro.

Thu, 07/12/2012 - 07:35 | 2609320 TaggartGalt
TaggartGalt's picture

How is it that everyone failed to see that the negative sign is only on the headline, not on the GWISSS10 quote?!  It's +0.53.  Asshat wearing lemmings are out in droves. 

Thu, 07/12/2012 - 07:53 | 2609362 Yikes
Yikes's picture

What don't you do a search for Swiss Yield Curve.  TD has it right but I won't call you a Asshat.

Thu, 07/12/2012 - 08:38 | 2609479 Doomer
Doomer's picture

Obviously, TD was quoting today's CLOSING yield on the Swiss 2 year, but put up the wrong graph.  Just his way of saying you should be long the Swiss 2 year today!  ;-)

Talk about looking a gift horse in the mouth!

Thu, 07/12/2012 - 07:42 | 2609321 TaggartGalt
TaggartGalt's picture
"The ECB also reported overnight that bank deposits with the central bank fell to €324.9 bln yesterday from €808.5 bln the prior day, as last week’s rate cut took effect. The ECB now pays ZERO on deposits. If deposits stay consistently lower, this could be a strategy that the Fed may consider as well."
Thu, 07/12/2012 - 08:03 | 2609378 AUD
AUD's picture

Australian government bonds have hit new highs too. The central bank here is presently driving 'benchmark' bond yields closer to zero while letting yield spreads between government & corporate debt stay high.

Businesses are failing depression style, since they can no longer roll over their debt at rates of previous years. Commodity prices are stagnant as government & government guaranteed (bank) debt is the mania.

Bubble, bubble, boil & trouble



Thu, 07/12/2012 - 08:20 | 2609433 Stock Tips Inve...
Stock Tips Investment's picture

The crisis in Europe is such that any change is possible. Each adopted as European authorities, ends up having a negative effect on your economia.Mucha intervention, many regulations, few solutions and a Europe that is drowning in a deepening crisis.

Thu, 07/12/2012 - 07:16 | 2609280 Dr Benway
Dr Benway's picture

LOL I am happy I live in proverbially interesting times. My life has spanned the rise of the computer, the fall of communism, and the collapse of the crony-capitalist system.

Thu, 07/12/2012 - 07:24 | 2609304 kroak
kroak's picture

Anyone realize the info is wrong?

Look at the graph.. It's the positive 10Y yield.

Swiss 2Y is -0.35%

Thu, 07/12/2012 - 08:52 | 2609527 WmMcK
WmMcK's picture

What's a few basis points difference? Or a few weeks ...
I draw the line at -0.5 though, that's too crazy.

Thu, 07/12/2012 - 06:58 | 2609227 Fips_OnTheSpot
Fips_OnTheSpot's picture

5y negative again, too

Thu, 07/12/2012 - 07:14 | 2609272 EscapeKey
Thu, 07/12/2012 - 07:00 | 2609232 moskov
moskov's picture

Swiss is the biggest money washing machine . They will be dead soon with the rest of Europd burning

Thu, 07/12/2012 - 07:03 | 2609241 swissaustrian
swissaustrian's picture

Russians are our best customers in the money laundering business ;-)

Thu, 07/12/2012 - 07:40 | 2609334 Let The Wurlitz...
Let The Wurlitzer Play's picture

But they are neutral.


Thu, 07/12/2012 - 07:00 | 2609234 swissaustrian
swissaustrian's picture

Thanks to all the idiots out there who are giving us Swiss free money! Soon our government will abolish all taxes and only launch bonds to foreigners.

Thanks to the SNB for setting the road to hyperinflation, but first their balance sheet is going to 200% of GDP (currently 80%, expanding at 15% of GDP each month).

Thu, 07/12/2012 - 07:04 | 2609242 Sudden Debt
Sudden Debt's picture

:) not a bad idea!

"To plug the deficit, we've decided that people can loans us more money"



Isn't this how the entire US system works?

Thu, 07/12/2012 - 07:15 | 2609275 swissaustrian
swissaustrian's picture

"To plug the deficit, we've decided that people can loans us more money"

Well, the Swiss government is already running budget surpluses (about 1.5% of the budget).

Thu, 07/12/2012 - 08:01 | 2609375 LongSoupLine
LongSoupLine's picture

the term "loan" implies it's a two way agreement.

The middle class in America (see - counterparty) has not signed on to the "agreeement" that the Fed has in effect.

Thu, 07/12/2012 - 08:18 | 2609424 Sudden Debt
Sudden Debt's picture

No, they didn't sign it. True...

but do you use dollar bills? You don't have to... you free to do as you want... you can barter if you want...

but if you use dollars... YOU AGREE!!

Thu, 07/12/2012 - 07:04 | 2609246 GeneMarchbanks
GeneMarchbanks's picture

Hyperinflation? Good one.

Think Japan.

Thu, 07/12/2012 - 07:11 | 2609260 swissaustrian
swissaustrian's picture

Swiss money supply is like a ketchup bottle. Nothing is coming out right now but just wait until the CHF becomes undesireable, e.g. when UBS and/or CS go belly up.

We're not Japan (Real estate bubble still forming, population growing and getting younger due to immigration, Debt/GDP 40%). We've had this before in the late 1970s when we pegged the CHF to the DM. The 1980s made us pay the bill for that with 10+% inflation...

Thu, 07/12/2012 - 07:15 | 2609274 GeneMarchbanks
GeneMarchbanks's picture

Swiss money supply is like a ketchup bottle.

You can make that argument about any country in the West, you're not special there.

just wait until the CHF becomes undesireable, e.g. when UBS and/or CS go belly up.

You'll nationalize, like everyone else. Again, nothing special.

Thu, 07/12/2012 - 07:17 | 2609286 swissaustrian
swissaustrian's picture

UBS and CS make up about 800% of GDP, that's special. Only the UK, Luxemburg, Singapore and maybe HongKong have such large financial sectors.


Thu, 07/12/2012 - 07:41 | 2609342 SoundMoney45
SoundMoney45's picture

Credit Swiss and UBS, for Switzerland, are Too Big To Bail.  In light of their being New York Fed primary dealers, they are for all intents and purposes US banks. For them, it is either Benny printing or lights out.  

Thu, 07/12/2012 - 07:01 | 2609236 Sudden Debt
Sudden Debt's picture



Thu, 07/12/2012 - 07:06 | 2609249 swissaustrian
swissaustrian's picture

I own quite a chunk of gold but absolutely no bonds. For a domestic holder, Swiss government bonds are useless. Only foreigners could be interested because of the currency premium.

Thu, 07/12/2012 - 10:40 | 2609834 Ratscam
Ratscam's picture

those are the old bank notes not in circulation anymore.
Let,s try it with the new ones. Also buy all 1 chf and higher coins up to 1967 for their par value, they contain silver!

Thu, 07/12/2012 - 07:31 | 2609314 youngman
youngman's picture

and the fear that some weekend their Euros wil be exchanged for Lira...Drachmas...whatever....

Thu, 07/12/2012 - 07:59 | 2609372 Sudden Debt
Thu, 07/12/2012 - 07:02 | 2609237 LawsofPhysics
LawsofPhysics's picture

Always wondered where corrupt paper money went to die.

Thu, 07/12/2012 - 07:08 | 2609252 Sudden Debt
Sudden Debt's picture




Thu, 07/12/2012 - 08:15 | 2609418 Gief Gold Plox
Gief Gold Plox's picture

Now that was painfull.

Thu, 07/12/2012 - 07:03 | 2609238 sudzee
sudzee's picture

I will lend you 500B today for 499B tomorrow.

Thu, 07/12/2012 - 07:10 | 2609254 EL INDIO
EL INDIO's picture

That’s the price of safety (as in getting your money back).

They must be very very afraid. The good think though is that PMs are surprisingly strong despite all what’s been happening !

Hopefully it’ll stay that way but I wouldn’t be surprised if their consolidation range breaks down.

Thu, 07/12/2012 - 07:20 | 2609293 Dr. Engali
Dr. Engali's picture

I don't know how many times it can test this range without breaking down. I keep expecting it to any day. Although they have to keep it somewhat elevated so they can continue pulling it dirt cheap at the "buy gold here" shops.

Thu, 07/12/2012 - 07:05 | 2609248 Taint Boil
Taint Boil's picture



Paying a bank to hold your money - WOW! I can't to see what history says about all of this. I wonder what they will call this period .........

Thu, 07/12/2012 - 07:11 | 2609259 Poor Grogman
Poor Grogman's picture

The age of beets is already taken.
Guess it will have to be the ZH age...

Thu, 07/12/2012 - 07:12 | 2609261 Sudden Debt
Sudden Debt's picture

the year before WWIII

Thu, 07/12/2012 - 07:07 | 2609251 Dr. Engali
Dr. Engali's picture

I wish my mortgage had a negative yield. I'd love to have debt that pays itself off. If I could have that I might be convinced to take in more debt .

Thu, 07/12/2012 - 07:12 | 2609264 swissaustrian
swissaustrian's picture

I know somebody who got a 10y fixed subprime (!) CHF-mortgage for 1.2% with no money down here in Switzerland.

Thu, 07/12/2012 - 10:46 | 2609857 Ratscam
Ratscam's picture

bullshit, i challenge you on naming the bank.
max mortgage 80% unless backed by lots of bonds and equity.

Thu, 07/12/2012 - 07:14 | 2609269 fonzannoon
fonzannoon's picture

My original mortgage (2007, yeah I fkin nailed the housing market) was 6.875%. I refi'd 2 years ago to 4.65%. I will probably wait this time until I can get 2.5%. Funny shit. Real estate agents who told everyone rates will not be this low forever must be scratching their dumbass heads.

Thu, 07/12/2012 - 07:14 | 2609271 Sudden Debt
Sudden Debt's picture

actually with inflation and rising real estate prices from 2000 to 2008, THAT WAS EXACTLY WHAT WE HAD ALL OVER THE US AND EUROPE!!!


Thu, 07/12/2012 - 07:12 | 2609265 overmedicatedun...
overmedicatedundersexed's picture

so this is what the the end looks like..i really expected them to keep it together past US elections. things must be much worse then even us ZH bears knew.

Thu, 07/12/2012 - 07:14 | 2609270 hedgeisforpussies
hedgeisforpussies's picture

the money from ecb did not go to switzerland. why would you go from receiving 0 yield to receiving -ve yield. the money went to 10year us auction yesterday. you can see that from the indirect bidders out there.

Thu, 07/12/2012 - 07:15 | 2609273 fonzannoon
fonzannoon's picture

Can someone please enlighten me as to what the "gold becoming a tier 1 asset" means and what it's possible implications are?

Thu, 07/12/2012 - 08:14 | 2609416 MeelionDollerBogus
MeelionDollerBogus's picture

It means as the bond market collapses from its bubble, gold will replace the role of bonds for all banks. Everywhere.

Thu, 07/12/2012 - 07:16 | 2609278 Ted Baker
Ted Baker's picture


Thu, 07/12/2012 - 07:20 | 2609297 SilverIsKing
SilverIsKing's picture

It's like watching paint dry.

Thu, 07/12/2012 - 07:18 | 2609288 booboo
booboo's picture

They have a plan..right?

Thu, 07/12/2012 - 07:21 | 2609300 Poor Grogman
Poor Grogman's picture

Look don't get me wrong I like the Swiss mostly.
But I refuse to pay them to look after my money
This surge in bonds and cash is really just the last stepping stone on the way to tangible assets.
Just as the Exter pyramid shows.

Thu, 07/12/2012 - 07:23 | 2609301 mark7
mark7's picture

Are these investors completely mad? Simply by putting the cash under pillow would be better than this idiotic shit. And Swiss people are uptight assholes anyway, cannot even pee after 10 pm in your own house and peeing while standing is definitely a big no no. Who the fuck make these rules there anyway?!

Thu, 07/12/2012 - 07:26 | 2609307 sockratte
sockratte's picture

would like to see that, billions of euros under my pillow. ;-)

Thu, 07/12/2012 - 08:06 | 2609392 MeelionDollerBogus
MeelionDollerBogus's picture


It's not little cash accounts but big accounts filled with BONDS at even negative yields.


Take x bonds at -1% to -2% yield and rehypothecate in various markets, especially the LIMITLESS rehypothecation in London, thus producing x * Y in "bonds". Now use EACH instance of each hypothecation for MARGIN COLLATERAL for trading for various hedge funds, JP Morgan, etc.


Thu, 07/12/2012 - 07:23 | 2609303 nmewn
nmewn's picture

Can't they just hook the printer directly to the furnace?

Thu, 07/12/2012 - 07:30 | 2609313 mark7
mark7's picture

German ovens are the best. :) and use StarMix ZYKLON industrial vacuum cleaners for the ashes...

Thu, 07/12/2012 - 07:39 | 2609335 Dr. Engali
Dr. Engali's picture

I hope you don't mind , but I'm keeping that line in my back pocket. That was funny.

Thu, 07/12/2012 - 17:44 | 2611210 nmewn
nmewn's picture

lol...its all yours.

Thu, 07/12/2012 - 07:38 | 2609328 Catullus
Catullus's picture

I will gladly give you $10,000 today for $9895 two years from now.

It's a profit deal!


Thu, 07/12/2012 - 07:39 | 2609332 gwar5
gwar5's picture

Currency Bedouins switching camels.



Thu, 07/12/2012 - 07:41 | 2609338 youngman
youngman's picture

The 10 year was a suprise yesterday....and gold and silver down....paper vs the real money.....I would love to know who is buying...the countries..the investors...who and what?....Japan just sid they were QE more today...not even a number given...just we are going to buy short bonds...and the yen got stronger..LOL...this just blows my mind...and the Stones have a 50th anniversery....what happened to paying with cash...not taking out a loan or selling a bond...where did the instant gratification need come used to be a great achievement to work and save and check you savings book every month to see the interest added and to see it increase in value...and you had a goal in first purchase was of couse a took me a summer to earn it...7 years old....but man I loved that was all mine...until someone stole it...that is when I met the darkside.....

Thu, 07/12/2012 - 08:36 | 2609468 battlestargalactica
battlestargalactica's picture

JPM Jr. must have stolen your bike, then used it as collateral on a loan for that was then 'corzined'.

Thu, 07/12/2012 - 08:52 | 2609523 JackT
JackT's picture

+1 for finding the darkside at such a young age.

Thu, 07/12/2012 - 08:23 | 2609436 John Law Lives
John Law Lives's picture

This just might give the US Treasury and POTUS an idea how to reduce the national debt... offer a negative interest rate on US Treasuries and force Americans to buy them...

100% FUBAR.

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