Cracks Are Starting To Appear In Europe!!! Protesters Burn An EU Flag, As Cyprus Begins To Crumble Under The Tension!!!

The big rally in European risk assets like stocks took a breather late last week.

Citi strategist Robert Crossley is watching flows in sovereign bond markets, and he warns that problems are surfacing in Europe.

In a note to clients titled "Cracks starting to appear in Europe," Crossley looks at demand for European sovereign debt – which just turned negative for the first time in three months.

Although the drop in demand has been led by a retreat from safe-haven investments in "core" sovereign debt – like that of Germany – the issue is where the money has been going.

Certain sovereign debt markets in the euro periphery – Spain, for one – have been the big winners. Demand for the periphery remains positive, notes Crossley, but that could change pretty quickly:

Although demand for peripherals has fallen, like the core, it remains positive. It is this cumulative yield-seeking positioning that concerns us in the current environment where the risk-on mood is turning and investors are reassessing the risk-reward of risk positions with the wash-out of carry trades in short-dated EUR swap forwards, a strengthening FX rate, and risks surrounding comments coming from the forthcoming ECB meeting.

Sure enough, there is one market in particular that has Citi particularly wary: Spanish sovereign debt.


Read more: [link to www.businessinsider.com]

zerohedge‏@zerohedge

Netherlands outlook to negative from stable by Fitch -> Fitch about to be sued into oblivion by the Netherlands

Give it up.
Markets will never fail...ever!
Up, down yes but never fail.
They are rigged at nauseum.

some day my friend... maby they nead an help from mother nature!

you don't imagine how bad things are here... we will nead to renegotiate our bail out soon! in Spain gov will not resist to corruption scandal...

There is a penalty for telling the truth that everyone knows anyway.

There's evil afoot here Watson.

Enquanto houver pão, queijo e azeite tudo vai estar bem.

estas completamente enganado! Muita gente não tem pãp e muito menos queijo e azeite!

Now. Multiply this by 10 and bingo. Welcome to Greece.

don't worry... we will join you fast!

In a note to clients titled "Cracks starting to appear in Europe," Crossley looks at demand for European sovereign debt – which just turned negative for the first time in three months

The Titanic had little cracks appearing too at first. :D

Resistance is growing here against the Eurozone. We have been denied a referendum, as the majority obviously wants out the Eurozone.

We are fucking tired bleeding for other countries. The awakening is still going on, but I have still good hope the battle for justice will be taken up by the righteous citizens.

In a world were the working man is condemned and the junkies, theives, liars and pariahs have risen up to the throne of lies.

Hello Luis. How are you my friend
Unfortunatelly I have but to agree with you. Well as I am saying these days is to time to bring the light again. Through days of darkness light is easier to see.

gezzzz we all should go out of this big mess euro...

well i'm well but my country is in a big mess... all the gov propaganga say we are near of don't nead of troika, but people in the streets can't get more austerity measures

damn, here was me thinking the tectonic doom had REALLY started going!

I fear they can lose a lot more. As people here, they will lose a lot before they realize that there is nothing else to lose. People need to realize that they must fight and they must fight hard. This is all wrong. Not necceseraly but the traditional way of fight, more a kind of fight that will bring an end or if not an end a balance in this world. Otherwise ....

...and we're not far behind.

Solidarity is the key to win this fight,if we all put down our jobs and say fuck it...enough is enough,that will come as a shock to the PTB.
Unity is what they fear.
Civil disobedience is a strong weapon.

Yes, but no worries for you. You have Guinness, so all is well

zerohedge‏@zerohedge

Total British taxpayer bailout of RBS: $104 billion

zerohedge‏@zerohedge

IAG's Iberia union calls strikes after talks fail

zerohedge‏@zerohedge

Wait for it... Greek January Economic Sentiment Declines from 86.9 to 85.8. Must be the choice of get back to work or go to jail

Same :D Now I am disappointed :(

Business Insider‏@businessinsider

FROM DREAM TO REALITY: SocGen's Awesome Presentation On The Risks And Debates Driving Markets Right Now [link to read.bi]