Another night, another sell-side bank suggests European QE must be getting closer and, along with more un-de-escalation in Russia-Ukraine, the bid for German bonds continues to surge asEurope’s greater depression appears increasingly priced into bonds. Yields on all German bonds out to 3 years are now negative and 10Y Bunds have collapsed to 90.5bps – record lows. This in turn – as we explained here - is dragging Treasury yields lower (10Y 2.36%) but leaves the spread to Bunds at record highs.
Bund tests 90bps…
as the entire German yield curve is now negative out to 3 years…
Get Back To Work Mr. Hollande; French Jobseekers Surge To Record High
Despite all the ‘promises’ French joblessness has risen every month since April 2011… July’s jump is the 2nd biggest sinmce April 2013 and at 3.424 million is a fresh record high. One can only hope (though good luck with that) that the new cabinet – same as the old cabinet – will turn things around. With 80% of French people believing that Hollande cannot fix the economy, we suspect things get worse before better…
HIGHEST CORRUPTION EVER!!!! IMF chief confirms she faces ‘negligence’ charges in multi-million euro fraud case (RT)
Greek prostitution up 1,500 percent..a young prostitute for Five Euros
“Five euros only, just 5 euros,” whispered Maria, a young prostitute with sunken cheeks and bedraggled hair, as she pitched herself forward from the shadows of a graffiti-riddled alley in central Athens on a recent weeknight.
Paris government split, Italian government broke: eurozone’s crisis now deeper than ever.
Just five months after the last government resigned and he took office as Prime Minister, France’s Manuel Valls must now form a new government after two leftist Cabinet rebels, Montebourg and Hamon, flayed the country’s economic policy in general and Francois Hollande in particular.
As predicted here and elsewhere, the Socialist Party is finding it increasingly difficult to carry out the austerity policy dictated to it by Brussels-am-Berlin. Hollande himself would not have adopted it had the US/EU axis not blatantly attacked his borrowing costs – as reported by The Slog earlier this year. The PS Left has been incandescent about the austerity policy since that time.
Sources in Paris confirm that Montebourg and Hamon will be fired, damaging the fragile unity of the Socialists still further. It is also thought likely that Valls will appoint more close allies to the Cabinet. But none of this will solve the increasing radicalism of the syndicats (Unions) beyond the National Assembly.
The right wing UMP Opposition was quick to take advantage of weekend criticisms of Hollande. “If Arnault Montebourg and Benoit Hamon had any dignity they would quit. If Manuel Valls and François Hollande had any authority, they would fire them,” centre-right UMP deputy Bruno Le Maire told Le Monde. “The problem is that never in the Fifth Republic have we had so little dignity and so little authority at the head of the state.”
Well, Hollande has asserted his authority….but his left wing has predictably condemned the action as “too authoritarian”.
This is a pivotal moment in both French and EU history. After the Jackson Hole speech from Draghi, it is now even clearer that the eurozone is flatlining, and Germany is the only real safe haven: immediately the markets opened today, German Bunds went net negative yield and currently stand at -0.04%.