– European Bonds Tumble Most In 15 Months, Stocks Slammed (ZeroHedge, May 15, 2014):
The one-way street in European peripheral bond yields/spreads… is over. Today saw Italian, Spanish, and Portuguese bond spreads smashed higher by the most in over 15 months. European stock markets all tumbled too with the FTSE-100 down over 3.5% and Portugal down 2.8%. Greece’s retroactive tax idea (quickly denied) drove Greek stocks into the red for the year and slammed the new GGB issue lower. Europe’s credit markets cratered wider and Europe’s VIX burst back over 17.
…
If the Bonds are issued by Governments to raise Current account revenue to pay bills and the market investors trash them, who buys them? Anybody?
In which case, can we expect the first default soon?
Or will they kick it down the road a bit more?