With Russia's MICEX down another 2% today back at May 2010 lows (and Russian govt bond yields up to 9.41%), it appears investors are anything but confident that the worst is behind us in Ukraine. Russian stocks are -18% in the last 3 weeks. Perhaps the biggest tell is the German stock market which is now the worst-performing European stock market this year and back to lows seen in mid-December. Even the glorious safety of Portuguese stocks is fading in the last few days. Europe's VIX broke 22% – its highest in 5 weeks; and Europe's high-yield credit markets (which are rumored to be heavily biased long) are squeezing wider playing catch-up to stocks. Peripheral sovereigns don't give a crap in their manipulated illiquid way but Bund yields have sluped to 1.54% (lowest since July) – its tightest to US TSYs since 2006!
Russia in freefall…
Germany hits 3-month lows – underperforming Europe (as even the safety of Portuguese stocks is ebbing)
And EU HY Credit is crashing back to stocks…
Europe is totally disconnected from US stocks (for now)…
And Bunds are the richest to Treasuries in 8 years…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1hfO7wL Tyler Durden