Thursday, November 17, 2011

Spanish 10-Year Yield Hits New Record High, Crosses 6.5%

Spain is trying to take the spotlight from Italy as its 10-year yields have now passed 6.5% today, another new record  Both the Italian and the Spanish situations are now near the terminal death spiral phase.
The knee jerk reaction by most traders is to rush into the perceived safety of the dollar and T-bills.  The fact that the US is Greece/Italy/Spain x 100 is lost on these brilliant hedgies and their algos.  Those engaging their frontal lobe and following this to the ultimate endgame are rushing for the safety of physical gold and silver, and not US treasuries.


6.54900 0.13800 +2.15%