Forget "the 1%-ers", meet the 3%-ers. As US Treasuries sell-off and European bonds continues to surge, the 3% handle on government debt is becoming a crowded trade with the following six nations now yielding between 3 and 4%... *US, UK, Ireland, Israel*, and drum roll please... *Italy and Spain*!· US 3.008%
· UK 3.044%
· Ireland 3.389%
· Israel 3.70%
· Italy 3.98%
· Spain 3.99%
Bear in mind that *a year ago the spread between Spain and US was 350bps and is now less than 100bps*...in some wierd world that all makes sense, we are sure.
Note today saw European stocks selling off (apart from Greece which roared 4% higher) but *European bonds screamed lower in yield* with Portuguese spreads 30bps tighter today alone and Spain and Italy 18bps tighter!! This is a perfect echo of 2013's first day ramp (and the *biggest spread compression since 1/2/13!!*)
*Everyone front-running ECB QE?*
Chart: Bloomberg Reported by Zero Hedge 1 day ago.