Europe Is Fixed: Spanish Yields Tumble To 8 Year Lows (Below US Treasuries)

EuropeIsFixed: SpanishYieldsTumbleTo 8 YearLows (BelowUSTreasuries)

// ZeroHedge

Isitanywonder Mario Draghididn’tlift a quantitative-easingfingerthisweek? Despite record unemployment, record (and disastrous youth unemployment), record suicide rates, record non-performing loans, and an inextricably-linked banking system facing $3 trillion in exposure to emerging markets… Spanishbondyieldshavecollapsedtotheirlowestsince 2006 (andItalianclosebehind). With an entirelybrokentransmissionmechanismofmonetarypolicy, it seems the "market" for European bonds knows no bounds as spreads on the riskiest sovereigns drop to pre-crisis levels and 10Y Spainyields are nowlowerthan 30Y USTreasuries.

Europe must be fixed?

Spanish 10Y yields are nowbackbelowUS 30Y yieldsforthefirst time in 4 years…

With the European banks holding the bulk of this crap and facing what many HOPE is a real stress test; we can only imagine the contagion should fears ever re-ignite – though we always have the magical OMT.

It seems much of this exuberance is the hope that a European think-tank expressed that March will see the ECB announce QE… as usual, any minute now.

Chart: Bloomberg

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