European Bonds Plunge Most In 3 Months, Stocks Slump…(Got Gold?)

Thursday, June 6, 2013
By Paul Martin

by Tyler Durden
ZeroHedge.com
06/06/2013

Portugal suffered the most – with its bond spreads now a huge 45bps wider on the week. It seems between the ever-increasing vol in Japan, a rapidly fading JPY carry funding mechanism, and lack of fresh meat from Draghi, Italian and Spanish bonds and stocks are losing their ‘greater fool’ bid. Sovereigns are seeing their worst day since February; stocks among their worst days since Feb – with several Spanish and Italian banks halted limit-down (as ECB’s QE-like collateralization was not eased); and EUR is strengthening against the USD as risk-flows are repatriated. Italian and Spanish stocks are now at 6 week lows, and Spanish, Italian, and Portuguese credit spreads at six-week highs. European financial and corporate credit are now wider (worse) on the year and equities are catching down. And the ultimate ‘greater fool’ momentum trade – GGBs – is fading – now down 9.5% in the last week…

The Rest…HERE

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