What Do Swiss Bonds Know That Nobody Else Does?

Tyler Durden's picture


On the surface all is well, stocks are soaring, the EURUSD is up solidly, and euphoria is back, or that is at least what is being telegraphed. So why is the single biggest unmanipulated flight to safety flag (defined by us) currently available - the Swiss 2 Year - screaming to run for cover? The bond is currently at an all time nominal low, as none of the peripheral euphoria has had any impact on Europe's true remaining risk free asset, and instead it just hit a new all time record low yield moments ago. Just what does it know that nobody else does, or wishes to acknowledge? Or is today merely the latest iteration of the Copperfield market: keep the algos distracted with flashing red headlines and bright green S&P numbers, which the real money is quietly running away into the safety of Geneva bank vaults...

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Fri, 08/03/2012 - 11:03 | 2675850 LawsofPhysics
LawsofPhysics's picture

Some pegs are harder to maintain than others...

Fri, 08/03/2012 - 11:26 | 2675925 Tijuana Donkey Show
Tijuana Donkey Show's picture

All pegs are equal, but some pegs are more equal than others.

Fri, 08/03/2012 - 11:36 | 2675949 This just in
This just in's picture

Sounds like peg envy to me.

Fri, 08/03/2012 - 11:47 | 2675979 I am more equal...
I am more equal than others's picture

Negative 454!?! Wow.  Do you smell the shit before it hits the fan or after?

Fri, 08/03/2012 - 13:03 | 2676201 SheepRevolution
SheepRevolution's picture

Oh p-lease! Positive interests rates on government bonds is just soooo 2011. It's called modern financial economics.

Fri, 08/03/2012 - 11:50 | 2675993 withnmeans
withnmeans's picture

Just like in war, POP SMOKE!   Good cover, only a select few have the infraReD to see thru this crap.


S&P may touch 1400, however when the smoke clears it all becomes evident. Truth will come out, it may just take awhile.

The markets forget the real trouble, or maybe it doesn't want to see it. The sheeple need to eat and drive, that makes very little money left over for the "wants".

ZHer's you know what is coming, hunker down and stay thirsty my friends...


Fri, 08/03/2012 - 12:19 | 2676092 El Oregonian
El Oregonian's picture

I believe that is a very extinct animal.


Fri, 08/03/2012 - 11:04 | 2675853 malikai
malikai's picture

A word of advice to our supreme soviet.

You can paint a pretty picture, but you cannot overcome the market with it.

Fri, 08/03/2012 - 11:05 | 2675856 Jlmadyson
Jlmadyson's picture

Because ain't jack shit fixed.

Nor will it be as debt continues to blowout.

Fri, 08/03/2012 - 11:05 | 2675857 TahoeBilly2012
TahoeBilly2012's picture

The Horrible, the Miserable and the Swiss. That was an album name we were working on for our punk band in the 80's.

Fri, 08/03/2012 - 11:06 | 2675859 RobotTrader
RobotTrader's picture

Lower interest rates = bigger "Animal Spirits" later

Fri, 08/03/2012 - 11:11 | 2675876 Vincent Vega
Vincent Vega's picture

Fuck off, troll.

Fri, 08/03/2012 - 11:13 | 2675890 disabledvet
disabledvet's picture

Later? More like "right now." to which I say...no matter how impossible it is...and it is..."just because it's a rigged market doesn't mean rigging it won't work."

Fri, 08/03/2012 - 11:49 | 2675983 derek_vineyard
derek_vineyard's picture

robo is the scitzophrenic alter ego of a totally frustrated perma bear who never had enough money to play the markets anyway

robo seeks all the trendy catch phrases and his/her adgenda has nothing to do with return on investment, but irritation to those gullible enough to be irritated

Fri, 08/03/2012 - 11:52 | 2675997 Vincent Vega
Vincent Vega's picture

...and based on his frequent use of phrases such as: "pie holeing", jaw boning", and "gum flapping" he seems to exhibit latent cocksucker tendencies.

Fri, 08/03/2012 - 12:00 | 2676021 fonzannoon
fonzannoon's picture

u forgot boner jam

Fri, 08/03/2012 - 12:03 | 2676032 mendigo
mendigo's picture

“We’re at an epochal turning point,” Brok said. “We’ve had 60 years of peace, freedom and welfare and now comes an attack that could destroy this concept, which we have to deflect.”

Truely epic.

Fri, 08/03/2012 - 11:30 | 2675930 Beam Me Up Scotty
Beam Me Up Scotty's picture

Massive short covering in FaceFuck.  Californication is SAVED!!

Fri, 08/03/2012 - 11:50 | 2675995 Agent P
Agent P's picture

Your votes are more negative than Swiss interest rates.

Fri, 08/03/2012 - 11:07 | 2675863 Ancona
Ancona's picture

You've got to love this potemkin market!

Fri, 08/03/2012 - 12:02 | 2676024 LeisureSmith
LeisureSmith's picture

Margin Stanley is loving it at the moment. Dirty dirty love.

Fri, 08/03/2012 - 11:07 | 2675864 Haager
Haager's picture

You guessed it all - the real money tries to hide in these swiss mountains.

Fri, 08/03/2012 - 11:07 | 2675866 Voltaire
Voltaire's picture

You wish Tyler.. from Bloomberg: "Merkel's coalition members signal acceptance of ECB bond-bying"

Just buy the rally!

Fri, 08/03/2012 - 11:14 | 2675894 adr
adr's picture

That story is actually bullshit and months old, recycled to cover the algo driven BS moves of today.

Fri, 08/03/2012 - 12:08 | 2676052 Voltaire
Voltaire's picture

Now you are bullshitting. 

Fri, 08/03/2012 - 14:49 | 2676475 MillionDollarBoner_
MillionDollarBoner_'s picture

Nah...he's just being Candide ;o)

Fri, 08/03/2012 - 11:24 | 2675920 SheepDog-One
SheepDog-One's picture

AH more 'signals' lol bullshit.

Fri, 08/03/2012 - 11:07 | 2675867 FRBNYrCROOKS
FRBNYrCROOKS's picture

Yield is dropping like a box of rocks. I am just waiting for the Chinese to start dumping US T-Bonds and end their participation in the Bond market to concentrate on hard asset (gold) purchases. We all know what is comoing. Ni Hao!!!

Fri, 08/03/2012 - 12:05 | 2676039 nope-1004
nope-1004's picture

They already have.  The 10yr is kept low through manipulation, via JPig and their IRS derivatives: TNX.  It's fooling you into believing the Chinese are still interested in US paper.  The entire market is a ponzi.  US Gov't just trying to cover up as much as possible.


Fri, 08/03/2012 - 14:51 | 2676483 MillionDollarBoner_
MillionDollarBoner_'s picture

Uhuh. Just who are those "Indirect Buyers" and who is funding them.

You get three guesses.

Oh, you only need one guess?

Fri, 08/03/2012 - 11:07 | 2675868 bonddude
bonddude's picture

euros are flooding into helvatia keeping those Italian finance police frisking like crazy.

Fri, 08/03/2012 - 11:07 | 2675869 scatterbrains
scatterbrains's picture

Its saying this whole move is bullshit conjured by the corrupt fed to trap all the bears from yesterday's disappointment from Drahgi.  Start by buying to cover 62,000 /es  (that got strategically put on within seconds of the close the previous day) in the wee hours of the thin markets on globex and create a 12 point lead into bullshit statistics at 8:30am to scramble the momotards into action and squeeze all those fresh new Bears that jumped in yesterday and you have the makings of a false break out that once rolls will be one fun ride down.

Fri, 08/03/2012 - 11:28 | 2675929 ReactionToClose...
ReactionToClosedMinds's picture

A modest recommendation to ZH .......... drill into this person's observation please.

My 'faith' in the 'system' was irrevocably altered when the old WSJ did an excelllent long piece following the October 1987 monster crash that revealed that 'someone' at the typically slowest part of the trading day, I think it was 11:20am then, on Tuesday when the markets were literally sitting on a cliff wall waiting to slide much further down, ....... 'someone' bought a major slug of MMI (then the dominant trading index .. it was the Major Market Index) forcing every short to cover immediately propelling the market out of its looming nadir.

The old WSJ politely 'begged the question' ......... 'who' did this, who had the 'confidence' to do this, what did they 'really know', etc.

Later 'speculation' was that this was the first of subsequently many market forays by the Plunge Protection Team.

The problem is, ultimately this becomes nothing more than crony capitalism as Treasury, Fed Reserve and major Wall Street become joined at the hip, losses are socialized while gains are private, as the taxpayer takes on essentially market risk management ... hubris develops, moral hazard increases dramtically, etc.

If and when PRChina decides to publicly pull the plug on US Treasuries (purchaes/holdings) where they will not be blown up as well in the process ... then this 'game' is over ...and Team USA will have almost no options ...


Fri, 08/03/2012 - 11:39 | 2675959 scatterbrains
scatterbrains's picture

on a side note which market breaks out first, gasoline or /es ?

It's a tight race so far.

Fri, 08/03/2012 - 11:55 | 2676010 ebworthen
ebworthen's picture

Smith and Wesson and Ruger.

Fri, 08/03/2012 - 14:55 | 2676493 MillionDollarBoner_
MillionDollarBoner_'s picture

I would love...LOVE...to see the "Balance Sheet" of the PPT :O)

Mon, 08/06/2012 - 12:29 | 2681932 MeelionDollerBogus
MeelionDollerBogus's picture

why? The PPT needs only use printed, stolen money to do all their transactions. Unless you plan to use it to jail them for treason, grand larceny, counterfeiting and money-laundering in which case I say by all means let's see the the balance sheets and get the cuffs out.

It's one thing for the market to move counter-intuitively. It's another problem entirely when the move requires input capital the market itself does not have - that requires counterfeiting and/or laundering weapons+drugs to cash on a national military scale and/or printing it from the Fed endlessly (counterfeiting)

Fri, 08/03/2012 - 14:53 | 2676487 MillionDollarBoner_
MillionDollarBoner_'s picture

Don't be such a cynic! ;o)

Fri, 08/03/2012 - 11:09 | 2675874 TheSilverJournal
TheSilverJournal's picture

All of that newly created money has to flow somewhere.

Fri, 08/03/2012 - 11:12 | 2675875 bonddude
bonddude's picture

The border @ Cernobbio is performing metal detector anal checks. Queue up please. Grazie.

Fri, 08/03/2012 - 11:11 | 2675878 evolutionx
evolutionx's picture

one chart says it all:


Bundesbank Target  800 B in August?



Fri, 08/03/2012 - 11:11 | 2675882 noobscalade
noobscalade's picture

Does this indicate that lots of people are putting money into swiss bonds since the end of May? 

Fri, 08/03/2012 - 11:12 | 2675883 Jlmadyson
Jlmadyson's picture

Remember the old comments in 08 if markets knew what credit markets know then this market would be about 20% lower.

About 75% now 4 years later.

Applies well here.

Fri, 08/03/2012 - 11:13 | 2675886 bigwavedave
bigwavedave's picture

Like Draghi (and now BK) it knows that war with Iran is coming soon. Where would you rather have 2 year money?

Fri, 08/03/2012 - 11:24 | 2675916 Beam Me Up Scotty
Beam Me Up Scotty's picture

In my coffee can at home buried in the back yard.

Fri, 08/03/2012 - 11:13 | 2675887 adr
adr's picture

I think the bust is totally unavoidable now. The powers that be have made their preparations to last as long as possible. Now they are just going to let everything fly to see how big of a fireworks show they can make.

Everyone stops to enjoy fireworks. Even if hundreds of them are starting to fly off into the crowd. For the people that don't get hit, it is even more enjoyable to watch.

2013 is going to be a killer year.

I mean that literally. War, famine, and all the worst things you can imagine.

When, by the headlines, beef gets too expensive to eat, how is McDonalds going to survive? Kind of hard to support a $90 stock price if a Big Mac costs $20.

Fri, 08/03/2012 - 11:31 | 2675940 sdmjake
sdmjake's picture

Beef in a BigMac? Do tell...

Fri, 08/03/2012 - 12:06 | 2676044 Beam Me Up Scotty
Beam Me Up Scotty's picture

Want to touch the heiney....!!!

Fri, 08/03/2012 - 21:53 | 2677396 StychoKiller
StychoKiller's picture

"So round, so firm, so fully packed!"

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