This page has been archived and commenting is disabled.

Europe Buys Just E164 Million Government Bonds In Latest Week, Lowest Since October

Tyler Durden's picture


That the ECB bought E164 million in peripheral bonds in the last week is not surprising. After all, there is nobody else who would even consider buying that stuff . What is surprising is that the ECB had to buy as much as it did: while we did not see even one Morgan Stanley euro sov run in the week ended December 31, somehow Jean Claude Trichet still managed to load up on quite a few PIIGs bonds about as quietly as possible absent a dark pool in government securities. Expect this number to jump again next week as the vigilantes return from Chamonix, but are still rather shy to knock on Bernanke's door.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 01/03/2011 - 11:35 | 844227 CosmoJoe
CosmoJoe's picture

Any comments on China's buying of Eurozone debt?  It sounds like China has, for whatever reason, decided to play 'white knight' to Spain, Portugal, etc.

Mon, 01/03/2011 - 11:43 | 844247 Ragnarok
Ragnarok's picture

Perhaps they are buying a seat at the table for whatever comes after the USD as reserve currency.

Mon, 01/03/2011 - 13:56 | 844554 MachoMan
MachoMan's picture

I thought that was what they were doing with commodities?

Mon, 01/03/2011 - 12:31 | 844359 johngaltfla
johngaltfla's picture

China has to do something with those Euros and there's only so much gold they can buy on the open market. So why not enslave Spain the way they have the U.S.? It's a nice location, great weather, and some primo real estate for naval and air bases in the future.

Mon, 01/03/2011 - 14:07 | 844362 Eternal Student
Eternal Student's picture

I think it's more motivated by trying to diversify out of Treasuries, than trying to do anything "good". China doesn't do anything good, except for China.  Which isn't different than most other countries, of course.

Keep in mind that Bonds were created in order to finance war, and have been quite successful at that. So, why should they prop up our military when they are actively seeking to challenge it? What would you do if you were in their shoes?

There is also speculation that they are the "Buyers of Size" who are driving the PM prices up. I.e. swapping their dollars for gold and silver. This seems quite plausible given their interest in destroying the Dollar as the reserve currency, and the fact that JPM keeps holding "fire sales" on gold and silver. Which seems to me like a losing battle for JPM, but I'm not a Wall Street Banker with a PhD in Economics.

Mon, 01/03/2011 - 11:38 | 844234 Jason T
Jason T's picture

Larouche has sense Euro blows up as early as this month.

Rush to get rid of Euro debt before the ship hits the sand.



Mon, 01/03/2011 - 11:39 | 844240 Cognitive Dissonance
Cognitive Dissonance's picture

Exclusive photo of Jean Claude Trichet trying on his protective armour in preparation for the coming EU banking riots.

Ain't he cute?


Mon, 01/03/2011 - 11:53 | 844270 TexDenim
TexDenim's picture

Looks like he is about to sing an aria.


Is he the fat lady that has to sing before The END?

Mon, 01/03/2011 - 14:57 | 844708 Pegasus Muse
Pegasus Muse's picture

Organ Pipe man.  

Mon, 01/03/2011 - 13:07 | 844441 gwar5
gwar5's picture

Kids just think he's the bomb

Mon, 01/03/2011 - 14:02 | 844569 MachoMan
MachoMan's picture

I'm thinking we'll revisit the maginot line...

Mon, 01/03/2011 - 11:46 | 844255 Oh regional Indian
Oh regional Indian's picture

Million. Such a quaint, last decade number. Decade...decadent...hmmmmmm

The demise of the Eurozone as we know it is imminent.

The rise of the New Eurozone is something we might all get to regret in the coming years.

The financial world is now in terminal decline. Fun to be an observer, but the big kahuna now is geo-politics. Lot's of alignments and re-alignments have happened over the past 10 years. Battle line are drawn, as it were.

Watch Germany, carefully. Such a phoenix it's been in this last century or 4, eh?

EU served as perfect cover for 4th Reich.

Bye bye dollear, by March.

Hello euro included basket.


Mon, 01/03/2011 - 12:01 | 844294 Ragnarok
Ragnarok's picture

I would say more than just Germany, it's all of the old European Empires/old European money that are tired of the US-UK calling the shots.  Gold will be their ticket to the big leagues.

Mon, 01/03/2011 - 13:40 | 844516 Ahmeexnal
Ahmeexnal's picture


It's a new empire, called the EU. Yes, the genocidal european colonialists want to rape and plunder like the days of yonder. This is the only thing that could unite them.

The EU was conceived as an empire, as Manuel Barroso has admitted:

Now...could you please enlighten us all as to how the hell do they plan to re-emerge into the big leagues with their rotten demographics? You need armies to go with that money.

The only armies in Europe are people over 70 lined up at the apotheke to get their meds. And the armies of young moslems who are waiting for "the signal" to re-establish their own moslem empire. The european empire would have to hire mercs, just like they have done for decades by financing the hamas and hezbollah. Funny thing is, Europe is doing China's dirty work and the suckers don't even know it. The financial war between the US and Europe will leave both of them in ruins by their own greed. Divide and conquer. China and the moslem empire will try to fill the void when they take over Europe and the US, but they will find nothing but a mirage behind which lies misery. OK, they might be able to create a large palestinian state in Bavaria or in New Jersey. But they can kiss goodbye the sheeple buyers who fueled their parabolic "growth".


"I can only hope and pray the euro project is destroyed by the markets before that really happens."




Mon, 01/03/2011 - 15:19 | 844761 Ragnarok
Ragnarok's picture

It's a new empire, called the EU.....The EU was conceived as an empire,


This parallels my statement.


how the hell do they plan to re-emerge into the big leagues with their rotten demographics? You need armies to go with that money.


All that matters is what oil is going to be priced in.  My guess is that it will be priced in gold.  The European have gold and will therefore have the energy necessary to become a world power yet again.

Mon, 01/03/2011 - 15:42 | 844825 Ahmeexnal
Ahmeexnal's picture

No, that means that when oil is free from the dollar shackles, oil rich nations will become world powers. In Europe, that means only Norway ATM.

This time, I doubt they will sink their navy like they did back in WW2.

Unless of course, the French turn the Eiffel tower in to it's originally intended use: as a huge oil tower.

Mon, 01/03/2011 - 13:45 | 844521 Ahmeexnal
Ahmeexnal's picture

And the CHF keeps soaring. Zits are about to pop in the former austrohungarian empire.

Mon, 01/03/2011 - 12:32 | 844361 francismarion
francismarion's picture

Germany has simply reasserted its natural primacy in Europe. France holds on for dear life, but even she will fall by the wayside when the Nordic Euro is initiated. Camoflaging seismic changes is what governments do best. Euro in its present configuration has until May, but who can say what sleight of hand will accompany its fall?

Mon, 01/03/2011 - 11:49 | 844258 ak_khanna
ak_khanna's picture

Last year we saw countries like Greece, Ireland facing bankruptcies due to increasing deteriorating financial position and increased borrowing costs. They had to be bailed out by the ECB and IMF. These problems are likely to spread to bigger countries and the tipping point, which is likely to happen, this year, would be when one too big to bail out country defaults on its debts. This would start a chain of defaults which all the governments and central bankers in the world put together cannot reverse pushing the world economy on an extended path of slow or negative growth for years.


Mon, 01/03/2011 - 11:52 | 844267 TexDenim
TexDenim's picture

Sounds like this may be a prelude to some more disquieting news. Chinese may have to step in again. They must be getting tired of babysitting two basket cases at the same time (Europe and the USA).

Mon, 01/03/2011 - 12:15 | 844273 plocequ1
plocequ1's picture

This is good, Right? The market is up.   Its all good, Right?

Mon, 01/03/2011 - 11:55 | 844275 Manipulism
Manipulism's picture
Wikileaks: Israel Plans Total War on Lebanon, Gaza

Posted on 01/02/2011 by Juan

The Norwegian newspaper Aftenposten has summarized an Israeli military briefing by Israeli Chief of Staff Gen. Gabi Ashkenazi of a US congressional delegation a little over a year ago and concludes that

‘ The memo on the talks between Ashkenazi and [Congressman Ike] Skelton, as well as numerous other documents from the same period of time, to which Aftenposten has gained access, leave a clear message: The Israeli military is forging ahead at full speed with preparations for a new war in the Middle East.

The paper says that US cables quote Ashkenazi telling the US congressmen, “I’m preparing the Israeli army for a major war, since it is easier to scale down to a smaller operation than to do the opposite.”

The general’s plans are driven by fear of growing stockpiles of rockets in Hamas-controlled Gaza and in Hizbullah-controlled Southern Lebanon, the likely theaters of the planned major new war. Ashkenazi does not seem capable of considering that, given a number of Israeli invasions and occupations of those regions, the rockets may be primarily defensive.

Ashkenazi told the visiting delegation that Israeli unmanned drones had had great success in identifying rocket emplacements in southern Lebanon, and that it had been aided in this endeavor by the US National Security Agency,which spies on communications.

The new, major war will be a total war on civilians, Ashkenazi boasted: “In the next war Israel cannot accept any restrictions on warfare in urban areas.” (I den neste krigen kan Israel ikke godta noen restriksjoner på krigføring i byområder in Norwegian, or let us just translate it into the original German: In den nächsten Krieg, den Israel kann keine Beschränkungen Kriegsführung in städtischen Gebieten.) Mind you, the civilian deaths deriving from this massive and unrestricted bombing campaign on targets in the midst of civilian urban populations will be “unintentional.” Planning to bomb civilian areas with foreknowledge that you will thereby kill large numbers of civilians is a war crime.

Ashkenazi also admitted to then Rep. Kirsten Gillibrand (D-NY) that Hamas is not in control of even more radical groups, which had infiltrated cells into Hamas itself, and which had rocket-making capabilities. In public, Israeli officials routinely demonize Hamas for every rocket fired from the lawless, besieged territory of Gaza, but here in private Ashkenazi was admitting the opposite. He even admitted that Israeli intelligence had no means to distinguish the even-more-radical from the merely Hamas.

Other State Department documents on the same theme say that last year this time Hizbullah had about 20,000 rockets, some of which can now reach Tel Aviv, and that the Shiite militia will attempt to stretch out its supplies for a two-month-long war, and would try to lob about 100 rockets at Tel Aviv per day.

In the 2006 Israeli war on Lebanon, one fourth of the Israeli population was be forced to move house. It will be more this time, and for longer.

The memos reveal that none of the goals of Israel’s 2006 war on Lebanon and its 2008-9 war on little Gaza were achieved, and that both Hamas and Hizbullah have effectively re-armed. What makes Ashkenazi think things would be different this time? Israel hawks have doomed themselves to the particular hell of Sisyphus, forced to roll the same stone up the hill over and over again with no hope of ever balancing it on the summit.

You know, Israel could have a peace treaty with Syria and Lebanon tomorrow by giving back the Golan Heights and the Shebaa Farms, and by accepting a two-state solution. Instead, its Dr. Strangeloves are planning out massive bombings of areas thick with innocent civilians and willing to subject Tel Aviv to two months worth of rocket fire.

Nor will the United States be held harmless from the blowback in the region caused by another Israeli war of aggression. Before September 11, Israel hawks used to make fun of Americans who warned that eventually there would be hell to pay for the Israeli strangulation of the Palestinians (for the argument, see this posting). And, imagine what a war would do to gasoline prices and to the world economy. My deepest fear is that US support for Israeli militarism, and the terrorism that support inevitably engenders, will be what finally finishes off the civil liberties enshrined in the American Constitution.

Mon, 01/03/2011 - 12:34 | 844343 gaoptimize
gaoptimize's picture

"Planning to bomb civilian areas with foreknowledge that you will thereby kill large numbers of civilians is a war crime."

So, Dresden and Tokyo fire bombings were war crimes, never mind the Hiroshima, Nagasaki nuking?

The people of the USA and most of its politicians know that we can not afford the size of a military necessary for defense if strategic bombing (including drones and missiles) is off the table.  We don't expect Israel to defend itself under these constraints either.

It costs the US somewhere between 1 million and 10 million dollars to remove a single combatant from the battlefield in Afghanastan. This is a cost that must and can be reduced or abandoned, which will become obvious to all in the next couple of years.  Israel's population is a fraction of the population of it's hostile neighbors.  They will do what they need to do.  So must we.

Mon, 01/03/2011 - 12:32 | 844345 gaoptimize
gaoptimize's picture

Duplicate.  Sorry.

Mon, 01/03/2011 - 11:58 | 844285 Don Mattingly
Don Mattingly's picture

Anyone know where I can grab Albert Edwards latest note?

Mon, 01/03/2011 - 12:07 | 844309 RobotTrader
RobotTrader's picture

Hey, wait!!!

I thought we were headed towards the the "Endgame of the Financial System"???

When is Eric "Is It Not?" King going to admit defeat and interview the CEO of Starbucks instead of all those gloomers like Jim Rickards?

Mon, 01/03/2011 - 12:31 | 844360 gaoptimize
gaoptimize's picture

I see a beautiful sheeple lamb sucking on a teet she doesn't realize she can't afford yet.  When that realization sets in, the chart will change direction.

Mon, 01/03/2011 - 12:49 | 844390 plocequ1
plocequ1's picture

There is no end game. Its all good. Appl up 7. I dub your posts no junk to the infinite. Go and sin no more, Brother.

Mon, 01/03/2011 - 13:01 | 844426 gwar5
gwar5's picture

$5 for a cup of coffee is not a sign of the endgame of the financial system?

SBUX is still 30% off it's all time -- 45% off it's all time in real terms.

How much is a caramel machiatto in Bancors?

Mon, 01/03/2011 - 15:09 | 844739 GetReal
GetReal's picture

I'm sorry to say it, but it's all just a matter of time now. This 'recovery' is all smoke and mirrors.

Mon, 01/03/2011 - 12:19 | 844335 BaronG
BaronG's picture

Merriam-Webster’s most looked-up word in 2010 was "austerity”

Mon, 01/03/2011 - 12:46 | 844384 Threeggg
Threeggg's picture

While everyone is doing the riverdance over at the Dow today

There is a stampede out of munis. Check this one out of Virginia down 5%

Yes thats "FIVE" percent !

Mon, 01/03/2011 - 12:50 | 844395 RobotTrader
RobotTrader's picture

Biggest percentage gainers in 2011 will probably be munis and PIIGs issues.

Mon, 01/03/2011 - 12:53 | 844400 gwar5
gwar5's picture

Is the there a short muni ETF?  VA is one of the states that got their budget under control.

Mon, 01/03/2011 - 12:55 | 844406 Cognitive Dissonance
Cognitive Dissonance's picture

Mon, 01/03/2011 - 13:18 | 844476 gwar5
gwar5's picture

Ha. Ha.

2011 VA balloon update: "VA is for Tax Avoidance $$"  1-800-notaxes

Mon, 01/03/2011 - 13:13 | 844459 gwar5
gwar5's picture

Timing: I just read China is going to buy some Spain debt

Crash avoidence: something coordinated afoot



Mon, 01/03/2011 - 13:31 | 844506 mikem54321
mikem54321's picture

Ahem....Didn't Brian Sacks just print/buy 50 times more USTs in a single day (today) than the ECB bought in one week???

Do NOT follow this link or you will be banned from the site!