ECB Buys Another €4 Billion In Sovereign Debt; Is Another Failed Fixed Term Deposit Operation Coming Up?

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Mon, 07/05/2010 - 11:47 | 453058 bugs_
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"a quick tender"

Mon, 07/05/2010 - 12:04 | 453081 hellboy
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Mon, 07/05/2010 - 12:06 | 453089 hellboy
hellboy's picture

TD, you should enjoy your holidays while they last...

Mon, 07/05/2010 - 12:13 | 453097 EscapeKey
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While they last? Soon, we'll all have a lot of holiday.

Mon, 07/05/2010 - 13:11 | 453167 hellboy
hellboy's picture

i have a feeling that consensus here is that you'll be sitting in a bunker full of gold, eating tinned food while holding your gun to protect you wife and 8 children. not really the best holidays... disneyland is better!

Mon, 07/05/2010 - 16:14 | 453382 papaswamp
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As they say...the hardest part of the zombie waiting for it to happen.


Mon, 07/05/2010 - 16:15 | 453383 papaswamp
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strange double post event deleted for repetitiveness

Mon, 07/05/2010 - 17:31 | 453456 saulysw
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It's a zombie post.

Mon, 07/05/2010 - 17:41 | 453478 papaswamp
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good god it's started!!!

Mon, 07/05/2010 - 12:06 | 453090 Amsterdammer
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It is also commonly described in Europe

as 'sterilization', anyhow the mid-term problem

the Germans are dreading is a possible recapitalization

if the amount of 'illiquid' sovereigns purchased

were to balloon slowly

Thus there is a veil of mystery about these

sovereign bonds purchased, which, imho, does

very little to restore the lack of confidence

in most of the European Treasuries,i.e the initial




Mon, 07/05/2010 - 13:57 | 453225 Temporalist
Temporalist's picture

I was watching Daryl Guppy when he said this on Europe Squawk Box:

Dow Repeats Great Depression Pattern: Charts Published: Monday, 5 Jul 2010 | 5:31 AM ET "The Dow Jones Industrial Average is repeating a pattern that appeared just before markets fell during the Great Depression, Daryl Guppy, CEO at, told CNBC Monday.

“Those who don’t remember history are doomed to repeat it…there was a head and shoulders pattern that developed before the Depression in 1929, then with the recovery in 1930 we had another head and shoulders pattern that preceded a fall in the market, and in the current Dow situation we see an exact repeat of that environment,” Guppy said."


He also said "the double dip is here."  Here is the video:


And  also from Europe Squawk Box about gold:

"Gold is a better investment than currencies or US Treasurys, Patrick Armstrong, managing partner at Armstrong Investment Managers, said. Central banks will monetize the governments' debt and inflation is likely, Armstrong said."

Mon, 07/05/2010 - 13:56 | 453226 Paper CRUSHer
Paper CRUSHer's picture

What?Another failed transaction?........

...............Ker-Ching!......... man do I love that sound.

Mon, 07/05/2010 - 14:18 | 453248 traderjoe
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The UK Independent is reporting that Hungary is asking for a second, stand-by, IMF bailout...

Mon, 07/05/2010 - 16:39 | 453407 zhandax
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Tell me if I am reading this correctly through a July 4th hangover...The ECB bought everyone's bonds to keep the market from collapsing and now wants the banks to deposit funds to pay for the courtesy.  Last week, they failed to do so in the desired amount.  This begs the question of why.  It seems unlikely that it is because they have better alternatives.  Did the money go to make margin calls?  Or would it force the banks to unwind underwater positions and recognize the losses?

Mon, 07/05/2010 - 16:54 | 453427 Djirk
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I hear the teabaggers are opposed to reacharounds.

Mon, 07/05/2010 - 17:34 | 453462 zhandax
zhandax's picture

The female teabaggers aren't....

Mon, 07/05/2010 - 18:54 | 453539 TBT or not TBT
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Depends on what is being reached around to.

Mon, 07/05/2010 - 19:08 | 453554 JLee2027
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You mean Tea Party or the Obamination version - teabaggers?

Mon, 07/05/2010 - 17:33 | 453461 saulysw
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I may be missing something here, but isn't a failed auction (bid-to-cover <1) big, bad news?

Mon, 07/05/2010 - 17:56 | 453488 zhandax
zhandax's picture

In general, yes but filter it by consequence.  A failed auction to cover next week's interest payment has far greater consequences than a failed auction to drain liquidity.  Having your Visa card declined for dinner is an embarrassment.  Having your Visa card declined for your mortgage payment could mean game over.

Mon, 07/05/2010 - 19:38 | 453542 TBT or not TBT
TBT or not TBT's picture

This European liquidity crisis story-cum-ECB liquidity suction story has me wondering, each time Tyler posts the latest news about it, just what the hell this ought to portend for EURUSD over the next weeks and months???  

Fri, 08/20/2010 - 10:29 | 532744 herry
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