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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 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

SNB is on stand-by!

Thu, 07/12/2012 - 07:16 | Link to Comment Stoploss
Stoploss's picture

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

Thu, 07/12/2012 - 07:35 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

5y negative again, too

Thu, 07/12/2012 - 07:14 | Link to Comment EscapeKey
Thu, 07/12/2012 - 07:00 | Link to Comment 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 | Link to Comment swissaustrian
swissaustrian's picture

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

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

But they are neutral.

 

Thu, 07/12/2012 - 07:00 | Link to Comment 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 | Link to Comment Sudden Debt
Sudden Debt's picture

:) not a bad idea!

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

....

actually...

Isn't this how the entire US system works?

Thu, 07/12/2012 - 07:15 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Hyperinflation? Good one.

Think Japan.

Thu, 07/12/2012 - 07:11 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Sudden Debt
Sudden Debt's picture

SWISS CHEESE RULES!!!

IT'S THE PERFORATED GOLD OF THE 21ST CENTURY!!

Thu, 07/12/2012 - 07:06 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Sudden Debt
Thu, 07/12/2012 - 07:02 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Always wondered where corrupt paper money went to die.

Thu, 07/12/2012 - 07:08 | Link to Comment Sudden Debt
Sudden Debt's picture

TURN UP YOUR SPEAKERS AT 1m44s !!!!!!

http://www.youtube.com/watch?v=P1z0cbSWfXU&sns=em

 

YIHAAAAA!!!

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

Now that was painfull.

Thu, 07/12/2012 - 07:03 | Link to Comment sudzee
sudzee's picture

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

Thu, 07/12/2012 - 07:10 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Sudden Debt
Sudden Debt's picture

the year before WWIII

Thu, 07/12/2012 - 07:07 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Ted Baker
Ted Baker's picture

GERMANS AND SWISS ARE IN CAHOOT WITH EACH OTHER AND IT HAS BEING LIKE THIS FOR A LONG LONG TIME....WATCH THE EUR.CHF CAREFULLY

Thu, 07/12/2012 - 07:20 | Link to Comment SilverIsKing
SilverIsKing's picture

It's like watching paint dry.

Thu, 07/12/2012 - 07:18 | Link to Comment booboo
booboo's picture

They have a plan..right?

Thu, 07/12/2012 - 07:21 | Link to Comment 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 | Link to Comment 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 | Link to Comment sockratte
sockratte's picture

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

Thu, 07/12/2012 - 08:06 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

REHYPOTHECATION

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

COMPUTE THIS.

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.

GET IT?

Thu, 07/12/2012 - 07:23 | Link to Comment nmewn
nmewn's picture

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

Thu, 07/12/2012 - 07:30 | Link to Comment 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 | Link to Comment 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 | Link to Comment nmewn
nmewn's picture

lol...its all yours.

Thu, 07/12/2012 - 07:38 | Link to Comment Catullus
Catullus's picture

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

It's a profit deal!

http://www.youtube.com/watch?v=fKBRtdp2e98

 

Thu, 07/12/2012 - 07:39 | Link to Comment gwar5
gwar5's picture

Currency Bedouins switching camels.

 

 

Thu, 07/12/2012 - 07:41 | Link to Comment 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 from.....it 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 mind...my first purchase was of couse a bike...it took me a summer to earn it...7 years old....but man I loved that bike..it was all mine...until someone stole it...that is when I met the darkside.....

Thu, 07/12/2012 - 08:36 | Link to Comment 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 | Link to Comment JackT
JackT's picture

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

Thu, 07/12/2012 - 08:23 | Link to Comment 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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