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Greek CDS Jump As Books For New 7 Year €5Bn Issue Covered Just 1.4 Times, Greeks Blame Weak Demand On Easter
Greek CDS are moving 10 bps wider from 293 to 303 bps as demand for the bailed out country's bonds was much weaker than expected. Greek weakness is spreading to other European countries: The cost of protecting other euro zone government bonds from
default were also mostly higher. The German 5-year credit
default swap rose to 30.1 bps from 28.9 bps. In the meantime, and in keeping with the Greek tradition of scapegoating, the very weak demand for the new 7 Year issue was blamed on... Easter.
From Reuters:
- Greece to sell 5 bln eur bond, demand softer
- Greece taps market with 5 bln eur, 7-yr bond issue
- Orders about 7 bln, well below March 10-yr sale, leads say
- Needs to borrow 16 bln by May to refinance maturing debt
- Lead source blames Easter holiday for weaker demand
The recently auctioned off 10-Year bond saw preliminary demand of €16 billion. The current order book is just 1.4x covered, at barely €7 billion in demand. Further, as Reuters also points out:
About 175 institutions bid for a slice, sources at the lead managers said, compared to 400 investors for the 10-year issue.
"It is Easter week in Greece and Europe and this explains why demand may seem a bit softer, with the book growing at a slower pace compared to the previous 10-year bond issue," said a source at one of the five banks leading the issue.
Guidance on the bond was set around mid-swaps plus 310 basis points, sources at the lead underwriters said, still around levels which Greek officials have said are "unsustainable" for the state's finances in the long run.
Maybe the BLS can also blame Easter/Passover/2012 Mayan Apocalypse expectations if a sub-300k NFP number materializes this Friday. And back to reality, as we discussed yesterday, if even with every possible guarantee imaginable Greece can't cut the yield demand on new paper to sub-6%, it is pretty much, as Evans-Pritchard notes, the beginning of the end for the Greek voyage on the capital markets Titanic.
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is it snowing there too?
For those of you that missed my take on this, it is a miracle (or evidence that no one really reads published reports) that Greek CDS didn't jump 200 basis points. See "Greek Crisis Is Over, Region Safe", Prodi Says - I say Liar, Liar, Pants on Fire! and then
Lies, Damn Lies, and Sovereign Truths: Why the Euro is Destined to Collapse! There is no way in the world Greece will be able to pull off what it has alleged with the numbers that they published. I challenge anybody to prove otherwise!
As excerpted from the posts above:
http://www.sciencecartoonsplus.com/gallery/math/math07.gif
Sure, blame snow or Passover or... but i KNOW why investors were not going for this paper junk... and here is why:
Looks like someone has a case of the Mondays.
he Greeks! maybe....... blame it on the Boogie
"snow in winter", "easter" at easter ..Hahaaaa - no need to watch monty python reruns!
I think they're trying to start a religious war. Blaming a bad fiat paper auction on the Christians is going too far. :>)
dunno, looks like status quo. 310 bp to mid swaps is where the current 7yr is right now: 6.05 x 6.02. Pricey, but not getting worse (for now at least).
.
http://i80.photobucket.com/albums/j174/Jbubs/funny-pictures-evil-easter-bunny-16.jpg
This little trader seems a bit concerned about this Easter's offering. Those Orthodox traditions are a little bizarre.
Greece, Dubai, OVER, find your next storyline...and stop flagging my posts as junk, you know I'm right.
Do you think the problem is solved then? If so how was that achieved.
Mind over matter. "There is no crisis...".
http://www.youtube.com/watch?v=VA9Gxq2Kohw
Say it often enough, with enough conviction, and you can change reality. Something like that anyway.
Yes, the modern philosophy!
Try to feed your child with "mind over matter".
Why are you such a bastard?
Am I really a bastard for telling all of you that the liquidity tsunami will gobble up all these "farts in the wind"? Dubai, over, Greece, over. They will do whatever it takes to reflate this puppy and so far, they're succeeding. I call it like I see it. If you think otherwise, go ahead, short this market, but you'll get crucified.
"Greece, Dubai, OVER, find your next storyline"
This shit Leo, this shit. My grandmother would have said you are acting like a horses ass. Your hosts have done nothing to deserve your contempt.
Guess I'm tired of reading shit on Greece. Let's find a new whipping boy, shall we? How about Ireland, or better yet England and the US who got us into this mess?
Their time is coming Leo. Fear not!
Sorry Leo but it was a joint world wide effort that got "us" in this mess. You and everyone else can't feed the god damn monster and then blame the monster when it begins to eat you. This mess was created by all the world wide enabling slime and scum who were just as greedy, though a bit less intelligent, as the various scum and slime balls in America.
This was a collective effort. No one has clean hands. And please don't tell me that everyone else was "seduced" into buying shit from the shit dealers, including the head shit dealer, the Fed. Being seduced is just a pretty word to described your cowardice in accepting blame for your actions, thus you need to point fingers at others for "seducing" you.
Please!
Agreed, successive Greek governments were just as guilty as the rest of the idiots who bought this crap. My only point here was that we are focusing way too much on Greece!
Yeah, if the Greek government had only invested in solar panel arrays then they would be sitting on piles of cash to use to pay off the deficit.
Is Kolivakis a Greek surname?
As in GAME-OVER certainly. Now we are just monitoring the specific form of the the end-game. Since the specific form the end takes will have a VERY significant impact on the "Next Story" a THINKING PERSON might want to follow-it closely.
Another reason while Greece and every other government has zero credibility.
The 10 bps increase should trigger another witchhunt
My link, I think, was offensive to admin so I have elected to delete my post.
"Damn you, Easter Bunny!"
--G Pap
Easter Bunny must be working at GS. That sly motherfucker!
How can we consider the Greek and Dubai financial meltdowns over? Looks like they are being hidden.
Doesn't matter, we have a bombing in Russia, oil spikes and Dallas says all good, so BUY BUY BUY.
Not sure what is going on but oil is running amok.
Well, it looks like it broke a flag and should test near the highs, probably triggered by bombing, who knows for sure.
I vote snow (job).
Headline....free kebabs with chilli sauce offered as incentive to buy bonds
Maybe the Greek economy will rise from the dead on Sunday.
Definately the blizzard
http://www.alexcartoon.com/cartoons/5453_15032010.gif
Under the relaxed collateral rules, Greece is just going to borrow from the ECB against their junk paper. The bailout has already happened. Leo's right; this story is over... the forces of evil have won another skirmish.
The Easter Bunny killed the 7 year issue? I thought it was Santa Claus ...
Obvious signs of the easter effect. Fear not though the Europeans are standing at the ready, the French have a gun and they aren't afraid to use it....
In fairness Greek (Orthodox) Easter is a big deal and this year it's actually the same day as Prod/Cath Easter.
Then again the likely set of (hoped for) buyers does not intersect much with the set of serious celbrants of Easter. Plus the bond market will actually be open (for a while) this Good Friday when the payroll numbers come out.
However, we should probably take them at their word when they say "pleasure-before-business" at this point.
The Chinese even said, who cares about Greece? Italy and Spain are the real problem.
As for Easter, the Greek debt bears were crucified and buried, but on the third day the CDS spreads rose again!
The UK is the real problem, but they have the geopolitical wherewithall to extend-and-pretend for another couple of years. But if italy is in trouble, the UK is toast...
Uh-oh, in a bizarre concordance between the Greek Orthodox mysteries and the Da Vinci Code, it's going to be Easter every week this year! And getting Easterier by the week!
Greece's swirl in the toilet bowl can only be stopped if we find the magic golden flush chain hidden in the Easter Bunny's Super Special Egg! Will YOU help Dora and Boots find the Super Special Egg? Great! You have to buy these bonds to help!
"The Easter Bunny made me do it"
Please see the attached:
http://gordonandthewhale.com/wp-content/uploads/2009/04/easter-bunny1.jpg
There's no way to outrun the tiger, but it's possible to get ahead of the other potential victims. Greece has got to keep making cuts until they're no longer the worst of the worst. Then we can start watching some other debt-laden country scramble to get itself out of the hole. That's why Greece will never get a real bailout, except from the IMF. No other EU country wants to fall to the back of the pack, with the hungry speculators hot on their tail.
Is this the result of some sort of "Bond fasting" prior to Easter?
And it looks like those who took this debt yesterday are already getting bent over and thrown a big warty one.
Couldn't happen to a nicer group of people.
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