European Bonds And Stocks Slide From Bernanke Opening Exuberance

Tyler Durden's picture

It seems the early exuberance that Bernanke's utterings caused in world markets was faded non-stop in Europe. European bonds and stocks saw their best levels of the day at the open and never saw them again. Greece and Portugal underperformed their peers; Italian stocks actually closed lower on the day and while bonds did stage a comeback into the close, they all closed the day wider from yesterday. EURUSD was the big story - its biggest shift since January 2011 (with a 450 pip swing) - but as the day wore on the USD clambered back some strength (even as US equities ignored its retracement).



and EURUSD's almost unprecented swing...


Charts: Bloomberg

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Tinky's picture

Interesting, but what's the current status of Kim Kardashian's ass?

TrustWho's picture

Kim has gone from heifer to cow....nuff said!

ACP's picture

Definitely in bubble territory.

gjp's picture

More of the same, everything backs off except US stawks.  Fuckin farce.

smcapmachine's picture

Bernank 25

ZeroHedge 0

gjp's picture

If you don't care about the means by which the lead is achieved, there's not much arguing with the current score.

ThunderingTurd's picture

The 10 year is already 8bps higher as the day has gone on.  Bernanke's worst fear is that he can't talk down yields.  That will be game, set, match.

gjp's picture

For all those claiming oil prices are the 21st C bond vigilantes, WTF?

derek_vineyard's picture

ben must be so frustrated.  everything he does to support bonds just props up stocks exponentially. the 5 year has some bid, but the 30 year is fading fast and the spx just rockets away.

pandoras box.

to get policy on board for more extensive QE or legislation..he needs stocks to get beat down.  Words won't do it.

Quaderratic Probing's picture

Rates will rise as banks,insurance and pensions have to sell old 10, 20 and 30 year bonds to prevent future losses.

Remember Ben was Perplexed at rates rising? The guys who get the big bonuses are quite a bit smarter than the teacher.

DUNTHAT's picture

Echoing Niels Jensen ---

"This leads to the first important observation of the day. Central banks will almost certainly use any conceivable tool at their disposal to keep interest rates low for the simple reason that nobody can afford for rates to rise. Governments cannot. Financial institutions can’t either as their balance sheets are loaded with carry trades, designed to repair their fragile balance sheets. Households certainly can’t as higher rates would mean higher mortgage costs for a sector that is already financially stretched."

It's real simple: normalization of interest rates equals depression.  No politician wants to be on the hook for that, so we can expect QE until something outside of their control triggers the reset. Boy do you want to be in cash and Gold at that point!

tao400's picture

If he loses control of the bond market, sinclAir will be right, get your money out of the banks.

bdub2's picture

Just looking at the spy....exhausted...Just a dead rally...a dead market...a dead economy...the Collapse wants to vaporize the Fed. Physics. The fake and fraud against truth. Truth is a bitch. It never loses. It's the Only Thing that can fight the fed. And it will rip the face off of the Central Raping System forever. Imagine a world without Central Bankers....That Time is Now. back to reality where the market goes up forever on free money, gold dies, wages decrease, part time great, obama phones everywhere, and zh is written in spanish.