With things beginning to come unglued in key global markets led by the Italian trouble, is all hell about to break loose?
May 29 (King World News) – Here is what Peter Boockvar had to say as the world awaits the next round of monetary madness: The unwind of everything the ECB tried to suppress in the Italian bond market is now truly extraordinary and scary in its rapidity. The 163 bps (as of this writing) spike (or crash in bond price) takes the yield to 2.53%, the highest level since September 2012, just a few months after Mario Draghi said “whatever it takes” in wanting to save the euro.
The yield was about .60% when negative interest rate policy took hold in June 2014. The 10 yr jump is more tame, only 43 bps to 3.10% and that is about where it was in June 2014. I’ve called for a while the European bond market as an epic bubble that at least in Italy so far is coming undone. It’s however intensifying again in the flight to safety countries such as Germany, France and the UK. I can’t even begin to know how Mario Draghi deals with the mess that he sowed the seeds for (see chart below).
Massive Spike In Italian Yields!
also from KingWorldNews: