Credit Market Charts Update, June 21 |

Credit Market Charts Update, June 21

June 21, 2012 | Author Pater Tenebrarum

Hope Springs Eternal

Below is our customary update of credit market charts, including the usual suspects: CDS on various sovereign debtors and banks, bond yields, euro basis swaps and a few other charts. Charts and price scales are color coded (readers should keep the different price scales in mind when assessing 4-in-1 charts). Where necessary we have provided a legend for the color coding below the charts. Prices are as of Wednesday's close in case of CDS, Thursday's close in case of bond yields and basis swaps.

Most – but not all – CDS spreads and bond yields in the euro area and neighboring countries have pulled b

ack in recent days, mainly based on hopes that the G-20 meeting would result in some concrete actions in the form of 'quick fixes'. Such hopes are bound to be disappointed, but presumably the upcoming euro-group summit at the end of June will produce something.

It is noteworthy that in spite of the 'desired' election result having been achieved in Greece and a government led by Antonis Samaras having been sworn in in the meantime, CDS on Greek debt continue to trade at 11,453 basis points – indicating an extremely high probability of another default.

Other countries lately in the markets cross-hairs are Morocco and Slovenia.

5 year CDS on Portugal, Italy, Greece and Spain - click chart for better resolution.

5 year CDS on France, Belgium, Ireland and Japan - click chart for better resolution.

5 year CDS on Bulgaria, Croatia, Hungary and Austria - click chart for better resolution.

5 year CDS on Latvia, Lithuania, Slovenia and Slovakia – Slovenia is getting into the market's cross-hairs now it seems - click chart for better resolution.

5 year CDS on Romania, Poland, the Ukraine and Estonia - click chart for better resolution.

5 year CDS on Germany (white) , the US (orange) and the Markit SovX index of CDS on 19 Western European sovereigns (yellow) - click chart for better resolution.

5 year CDS on Bahrain, Saudi Arabia, Morocco and Turkey – CDS on Morocco continue to shoot up - click chart for better resolution.

Three month, one year, three year and five year euro basis swaps – still bouncing - click chart for better resolution.

Our proprietary unweighted index of 5 year CDS on eight major European banks (BBVA, Banca Monte dei Paschi di Siena, Societe Generale, BNP Paribas, Deutsche Bank, UBS, Intesa Sanpaolo and Unicredito) – somewhat lower - click chart for better resolution.

10 year government bond yields of Italy, Greece, Portugal and Spain – Spanish and Italian yields have pulled back considerably yesterday and today. Greek yields are increasing once again - click chart for better resolution.

Austria's 10 year yield (green), UK gilts yield (yellow), Ireland's 9 year yield (white) – and the mystery of the Greek two year note quote has been solved – what you see here is its price, not its yield (orange line). The yield was at 225% today, down from 247% yesterday - click chart for better resolution.

Nomura's leading indicator for China (white line) versus copper (green), gold (orange) and the Hang Seng index (purple) - click chart for better resolution.

5 year CDS on Australia's 'Big Four' banks -still in 'risk on' mode, but probably not for much longer – click chart for better resolution.

Charts by: Bloomberg

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