The last thing you want to do if you are a bankrupt country, is tell your skeptics not only 1) the catalyst to trade around but 2) the timing too. Which unfortunately is precisely what happened when, as we reported yesterday, Spain has announced it is panicking about the LTRO roll on Thursday. The net result: the worst performing stock market in Europe, as the IBEX is down 4% for the day, and plunging banks, with both of the country's most insolvent institutions, BBVA and Santander, trading down over 5%. All of these festivities have resulted in a massive shift from stocks to bonds, and the 10 Year now trading below 3% for the first time since April 2009. More concerning is that the 2 Year has just hit fresh all time lows at 0.586%, a level not seen since the 0.6044% on December 17, 2008 after the Fed did its last ZIRP cut. Incidentally a regression analysis between the 2s10s30s butterfly and stocks, indicates that the S&P rightfully belongs well in the triple digit territory.