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Eurobond Trading Desk Commentary: "The ECB Is The Only Buyer Out There Right Now"
If anyone was concerned that someone may be stupid enough to believe the vomitorium of lies and deceit coming out of Europe on a millisecondly basis, we are hereby happy to assuage your fears. Courtesy of a very spot on trading desk comment, we can confirm that nobody but the ECB is buying Greek, Portuguese, and Irish bonds.
For what its worth, in conversation w/ one of my bond guys, it seems as though people are still fearing the EUR debacle. attached is the bid list that the ECB sends them each morning with prices they are willing to buy at and MS sales will go into their clients who own the bonds and submit bids. ECB is the only buyer out there right now.
While the Obama tax news appears to have given everyone a green light for a more bullish stance, he was saying macro funds are still hesitant because of the EUR overhang.
Financing needs this year have been met but next year is a different story...
From: XXX (MORGAN STANLEY & CO)
At: 12/08 4:57:17GGB 4.30 03/20/2012 91.63
GGB 6.10 08/20/2015 77.98
GGB 4.60 05/20/2013 83.12
GGB 5.90 04/20/2017 69.57
GGB 6.25 06/19/2020 69.53
GGB 5.30 03/20/2026 61.04
PGB 5.00 06/15/2012 101.23
PGB 3.60 10/15/2014 96.14
PGB 3.35 10/15/2015 93.41
PGB 4.35 10/16/2017 93.39
PGB 4.80 06/15/2020 91.52
PGB 4.95 10/25/2023 86.58
PGB 4.10 04/15/2037 70.28
IRISH 3.90 03/05/2012 98.70
IRISH 5.00 04/18/2013 97.91
IRISH 4.00 01/15/2014 92.71
IRISH 4.60 04/18/2016 88.16
IRISH 4.50 10/18/2018 81.81
IRISH 4.40 06/18/2019 79.38
IRISH 5.90 10/18/2019 87.77
IRISH 4.50 04/18/2020 78.23
IRISH 5.00 10/18/2020 79.45
IRISH 5.40 03/13/2025 77.21
»
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Thanks Tyler,
U have a fan here in Spain.
Your Web is the future.
Ditto. My new favorite place to be educated.
It was on the tip of everyone's tongue, Tyler just gave it a name.
"assuage your fears"
A very interesting play on words, TD. Nice work.
http://www.google.com/search?aq=1&oq=assua&sourceid=chrome&ie=UTF-8&q=as...
Julian Assange does/will assuage your fears, THEY really are out to get you...THERE now are you properly assuaged?
and....regards those 'haircuts' against PAR...really NOT BAD, hell the USA dollar in 10+ 20+ 30 year bonds...IF THAT GOOD (unsubsidized by the FED, etc, and not longer a reserve currency), we'd be just fine...
i'd say if 'thats all there is, punishment-wise' there certainly is "not even a problem"...
I love it! An excellent phrase ... which applies to a countless number of current venues, such as the Fed, Congress, the White House, the BLS, Wall Street, the banking and mortgage industry, Barney Frank, the FDIC ... etc ...
Protecting the uber-wealthy, no matter what the cost, is every central banker's only duty.
The cost is the rule of law.
Gone is it to insulate and facilitate the fraud, cheating and stealing of all that is yours.
The monetary system is theirs. I just adapt.
So, there is no such thing as even a market anymore, a free one of course had taken around back and shot years ago. Rally on........
ECB only buyer of Eurobonds, FED only buyer of UST's and stocks....yea this should all end well.
It is a nationalized financial global stock market and price fixing. All the fed is doing is price fixing stocks. There is no "healthy" market or economy that can ever take over at this point or any point in the near future. How does Bernanke honestly believe he can back himself out of a stock market that is 99% nationalized at this point.Here is a list of what the markets need perpetually simply not to collapse and chug along on the lowest volume in history.
They require:
The market is pricing in the creation of the bubble to end all bubbles. We all know it is going to implode but those long just do not think it will be any time in the near future. The above is what the markets require just to have semblance of normalcy. The market died and everyone was determined to be bankrupt in 2008..this creature is some zombie market just waiting for one between the eyes.
That's some damn good summing up.
Zombieland Rule #4 - "Double Tap"
http://www.youtube.com/watch?v=PapZO7NXB3Q
Applies to zombie markets.
The first time I saw that movie I began taking notes.
Rule #17: "Don't be a hero"
Are we listening Ben?
+1, nice post Mccloy, agree 100% with u.
Brilliant post
+1
Well done.
Twenty years from now Wiki Leaks is going to produce a cable that reads "Timmy, we should have just let them fail".
Uncle Ben
you're the man, John McCloy. well put!!!
Well I have to admit I feel a little better....I thought there were some pretty stupid people out there buying them...I could not find out why....now I know its just the dumb Government...I feel better now...
assuaged?
What DO you call a market with only one participant? Financial masterbation? Unimarket? Solo Transacto? Monomarket?
+1
A market should be natural price discovery. It should be the wisdom of the masses that discovers the price. Not a single (privately owned) institution, like the FED... when that happens, it's called fascism... and the US has become Fascism central in a relatively short space of time.
Thats the thing, the elites have decided only a few people are qualified to perform 'price discovery', the peasantry's only reason for existence is to HAND OVER YOUR DAMN MONEY AND GET BACK TO WORK!
+1
A rigged casino...
Autoerotic asphyxiation.
Collapsus Interuptus
The end is near market.
"What DO you call a market with only one participant?"
The United States Federal Reserve System.
+100 - Larry Kudlow would call it free market capitalism, Bob Pisani would call it a Bull Market, Jim Cramer would call it Cramerica, Ben Bernacke would call it home....
I kind of like the sound of Monomarket. Has that sick overtone to it.
A Schrodinger Market
Well, this is not a revelation. Since the Ireland thing, the ECB is secretly and pathetically buying every single bond emitted to save the appearances.
I don't know what they expect by doing this, maybe that the situation will normalize someday, but this is quite scary.
Theyre only buying a bit of time before the kickoff of world war, world elites perfectly positioned as usual totaly owning everything.
'While the Obama 'tax news' has given everyone cause for a more bullish stance'...
What, someone up till now had a LESS than totaly charging 'bull stance'? Manny...shoot dat piece of chit.
Man, I have been reading this site since it was a blog. It is the first thing I look at as soon as I wake up and the last thing I do before I go to sleep. But just like PBS I keep saying I am going to make a donation but never do! Time to buy some Zero Hedge shirts for the Holidays! Keep fighting for truth!
Once again, fear and uncertaintly is gripping the financial markets. So many people are on edge.
Virtually every selloff is treated as if:
"This Is It!!"
"Any minute now, the western economies are going to implode!"
Meanwhile, the sheep continue to splurge on overpriced, trendy fashion items such as $175 leotard outfits and $65 yoga mats.
New US fad? Homeless with rockin' bods?
Edit: "Will do planks for food" LOL.
It's happening. I've met two unemployed women in the past month with membership at uber-fashionable gyms. It's the new bread-line.
Unemployed women?
You mean like housewives? Theyre suppose to be unemployed!
its good to have some true believers on the status quo. unfortunately, that doesn't change the facts...this is TIME of CHANGE.
The chart supports your assertion how?
....for me? How?, well, for one, i am fully assuaged by Julian Assange...What is it you people are afraid of? ha ahs dfasdfkl lol
He doesn't understand the difference between price and earnings.
This is why he lives in his mother's basement.
He lives in a basement? Nice!
Aspiring trophy bitches to the rescue. Yeah, that works.
Thank goodness this does not constitute an overdraft facility or any other type of credit facility with the ECB in favour of European Union central governments, let alone the purchase directly from them by the ECB of debt instruments ... [TFEU 123.1]
This is definitely good news...so when we have a worldwide currency devaluation event how are they going to screw physical PM holders?
All these events so remind me of a paper by Andrew Dickson White:
http://mises.org/books/inflationinfrance.pdf
The EU doesn't want to screw PM holders, as they are PM holders. Also they revalue their gold reserves to the current price, unlike the Treasury which marks their gold reserves muc, much lower.
Sounds right Rags and I'm not sure why you got the junk. Here in the U.S. very few people have any significant bullion; and many are forced to sell to buy bread.
In my chronic town (Concord CA) there are We Buy Gold signs in every pawn shop and many a jewellery store window.
Bank of Ireland has doubled in 10 trading days....
Anyone who bought that thing when pessimism was at the highest "made their year".
Bank of Ireland has DOUBLED! Wow yea up almost $1 !
SheepDog-One, do you trade? A double is a double, my friend :0
Some Dutchmen also got rich selling their tulip bulbs just before they peaked in price...
The same thing happened to Nortel........what's your point?
Those who bought at 10 and 5 didn't fare as well. This grows tiring. Ignore.
I personally know individuals who have lost over 90% of their initial investment in Bank of Ireland shares . Given the absolute clusterfuck that is the Irish banking sector buying the stock at anything above $0.01 cents is a risk .
Captain Hindsight here will make Doc Brown rich. Not that he really needs his help.
You want to take Acid and see how it all staunchly fails to make any sense... wow! -it's like a weird red brick building and it keeps making shadows in different places but there are like these lights behind the bricks and they keep trying to come through and you can never tell where the corners are...and there are no people, just lots of really clean, like its just rained, grey mortar..and it feels really lonely, except for the lights..which, wouldn't you know- are different colours. rah
Stars in the sky, looking like Diamonds, yes...L.U.C.Y in the Sky with Diamonds...from time to time 'a trip' away from the Obsessive Compulsive that is so valued in the Current Dominant Culture of Death/sanctioned Economic Violence; unto Darwinian blessed Death.....it is a good thing..
I wonder what Norway thinks of their recent investment in Greece now -
?? Norway thinks of their recent
""investment in Greece now""
Ha ha ah, eh, er, from riches at PAR,
to rags at 0 ??
In a year the term ""investment in Greece"" should be a tired old joke, in the line of ''selling the Brooklyn Bridge"
Everyday I wonder how long they can keep this giant Ponzi scheme going and yet they come up with a method all the time to extend and pretend the charade. What will be the catalyst is the ongoing question.
So do I.
How Long?
Far far longer than You can remain Solvent, even if you think you are safely 'not in the market, "SITTING ON CASH" there is no way out, no exit, get used to it...
"What will be the catalyst is the ongoing question."
Oil shortage, whether man-made or a result of planet earth's dwindling reserves; or both. Slow train comin'.
Be careful gold,
another leg down 25-49 points...
I mean EURUSD ----------> 1,26 target
Apply a Constant Ratio of 1.050 euros per gold onze = 1.323 $ gold per onze.
And the debacle continues. I mean, if the ECB doesn't purchase the bonds we go into crisis, but at least the we start the write down process.
Ugly Youtube Bear #1: "The Ben Bernank is not alone."
Ugly Youtube Bear #2: "The Jean-Claude Trick is not printing money, either?"
Ugly Youtube Bear #1: "Were the Ben Bernank and the Jean-Claude Trick dropped on their heads as babies?"
If you have a big sack, and some gambling money...there is some decent yield in there.