Archive - Sep 21, 2010 - Story

• Asian stocks gain as US economic concerns ease.
• Australia increases commodity export sales forecast to record $203B.
• ECB steps up its bond buys amid worries of default by Greece, Portugal, Ireland.
• Escaping double dip to growth recession means no unemployment relief seen.
• Greece sells 13-week T-bills, yield drops to 3.98%
• Gulf states in $123B US arms spree; Arab nations seek to counter power of Iran.
• Oil falls after US Homebuilder Confidence reading prompts demand concern.
• Treasuries hold gain as Fed may say it is open to boosting debt purchases.
• US recession ended in June 2009, NBER says amid threat of renewed slump.

Austrian banks may be sitting on a €2.6 Trillion off balance sheet derivatives time bomb and the central bank does not know how much risk is involved in these trades.

Today's market ripping false strawman (as if the ECB would let the Irish bond auction fail) was the issuance of €1.5 billion in 3.5 and 8 year bonds out of Dublin. And with yields a full percentage point higher than before, ECB backstopped banks using the newly purchased Irish bonds as collateral with the ECB, and/or the ECB picking up who knows how much itself, today's auction was a smashing success, if one can calls paying 6% for 8 year bonds success. But the market apparently loves ECB interventions so much it has tightened Irish CDS by 15 points on the day. Full results are as follows.

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 21/09/10