Italian, Spanish, Belgian Spreads At Record, Intesa And Dexia Limit Down, Markets Plunge, Cats And Dogs Living Together…

Friday, August 5, 2011
By Paul Martin

by Tyler Durden

The meek and somnolent shall inherit nothing, because Europe just came back online and the apocalypse has resumed. Italian, Spanish and Belgian bonds opened lower, with spreads to Bunds surging the most since before the euro was introduced in 1999 (but before it was abolished in 2012). Specifically, the yield on 10-year Italian bonds jumped 19 basis points to 6.38% as of 7:40 a.m. in London after reaching 6.40%, the highest since 1997. The spread over bunds was as wide as 414 basis points. The yield on two-year Italian notes jumped to more than 5 percent. Additionally, the FTSE was down 2.7% as of first prints, the CAC 40 down 2.% and the lovely Italian FTSE MIB did open, however down 3.3%. We give it a few hours before it implodes. Furthermore, both Dexia and Intesa Sanpaolo are now limit down. US futures are down 7.5 and dropping. And this is just the beginning…

Make sure you have provisioned enough popcorn and single malt for your front row seats to the last attempt to prevent the end of the Eurozone.

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