Greek Debt Hits New Fresh Record Of 410 Bps, National Bank Of Greece Tumbles As Greece Now Seeks Arab Money

Tyler Durden's picture

How long will this charade continue? The whole world is fully aware that Greece is done, and now even the traditional long-term holders have thrown in the towel: the entire Greek curve has melted up more than our own S&P - Bloomberg now notes that even US accounts whose risk memory is non-existent, may not be willing buyers of Greek debt. What's worse Greece is out of diplomatic and political ammo - the CDS scapegoating is finished, which is quite ironic - as shown below CDS are lagging Bund spreads by an unprecedented amount. This implies, as we have claimed all along, that CDS were never the marginal driving force in the spread explosion, but that it all came from cash selling. Additionally, the paradox is that the inability and unwillingness to hedge has left cash spreads blowing in the wind - now virtually nobody is willing to trade in Greek CDS, so Greece has once again shot itself in what is left of its feet. Of course Greece can join the SEC in blaming the shorts, but that's an old tune. And to top it all off, G-Pap has repeated that the EU/IMF support deal "has been a great success and the situation is manageable." Don't tell that to shareholders of the National Bank of Greece whose stock is down 10% in just two days. And the biggest and most supreme irony, reports that Greece is now seeking emergency capital from Abu Dhabi and other Arabic sources... As if they didn't have a Dubai of their own.

Here is a chart of cash and CDS spreads. Here is Credit Trader's concise summary of the action:

CDS-Bond basis is increasingly negative again (Bonds underperforming CDS so don't blame the CDS market).
5s10s curve are inverting further in both Bonds and CDS (Bonds more inverted/stressed)
5Y GGB at new wides to Bunds (CDS still within its widest levels).
All-in-All - not pretty!

Not pretty is a victory for the bulls.

Greek Bonds and CDS Update

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MsCreant's picture

410. We stick a thermometer in it and call it done at 450?


Gold, bitches.

Quintus's picture

Publishing that 450 number is equivalent to putting a big 'Kick Me' sign on their backs.  What in hell were they thinking?

Postal's picture

Not too surprising considering their overall expertise in PR...

macroeconomist's picture

Got toffee popcorn, multipack coke and all my gold in physical!! let the show begin lol...

Cognitive Dissonance's picture

The little boy with his finger in the dike has just be overwhelmed. Where's that damn bucket brigade when you need it?

BorisTheBlade's picture

And the biggest and most supreme irony, reports that Greece is now seeking emergency capital from Abu Dhabi and other Arabic sources... As if they didn't have a Dubai of their own.

Arab states are like the last resort for almost eveyone, but what flies for Citi wouldn't fly for Greece, besides it's a bit late.

Jeff Lebowski's picture

I dropped off the money exactly as per... look, man, I've got certain information, all right? Certain things have come to light. And, you know, has it ever occurred to you, that, instead of, uh, you know, running around, uh, uh, blaming me, you know, given the nature of all this new shit, you know, I-I-I-I... this could be a-a-a-a lot more, uh, uh, uh, uh, uh, uh, complex, I mean, it's not just, it might not be just such a simple... uh, you know?

SmalleyD's picture

Your wife owes money all over town, including to known pornographers. ... And that's cool, man.

SayTabserb's picture

He was broadminded because of his work on the Port Huron Statement. Not the final draft, but still...

MsCreant's picture

Eyes on the prize. Not Greece. California Love:

Cognitive Dissonance's picture


Not teaching classes this morning? Nice to see your face among the early (ZH) risers.

MsCreant's picture

Grading papers and tests.Teach later. I use ZH to blow off steam when I work sometimes. Nice to see you round the blog, too. Got some Malware that fucked me up for a bit. Switched to Chrome, bitches.

Cursive's picture

Chrome is the bomb.  Switched about a year ago.  Superior performance.  Way superior.

Cognitive Dissonance's picture

I tip my hat to you. Early in my financial career I worked for a big box outfit and I became their new rep trainer for 6 months until I crumbled under the stress.

It was THE most rewarding activity I have ever engaged in and also the most exhausting. The thrill when you reach a mind is indescribable. The stress of doing so, of remaining fresh and lively, to engage and activate, was debilitating. I lost weight and hair.

I can tell from your posts you are the same way, engaged, concerned, aware, excited, emotionally involved and thus an excellent teacher.

How was that for a Wednesday morning suck up? :>)

SteveNYC's picture

Should be good for a rally in tech stocks and small caps.....everything else seems to be.

"Asteroid strikes Manhattan wiping out all HFT machines and stocks rise"

Cursive's picture

Tomorrow's Headline:

Greece First Sovereign to Default; SPX Hits New 52-WK High

bugs_'s picture

Bow to Xerxes.

Ned Zeppelin's picture

Eat hearty, men, for tonight we dine in hell.

Internet Tough Guy's picture

Where is 'liqudity tsunami' Leo hiding? I miss his lectures.

Lionhead's picture

Leo was sighted in Athens trying to get his quota of the new Hellenic "Heroic" 100 year bond at 18% for funding his pensioners into paradise.

SofaPapa's picture

Just. Default.  But I suppose that would be far less entertaining.  Who has the popcorn?  Pass it here.

trav7777's picture

Why the hell is Greece seeking MORE money?

Fuck, CHARTER A BANK and lend it to yourself!!!

The "money" ostensibly lent by these major banks in the banskter West NEVER EXISTED.  They spun it out of the ether as an ACCOUNTING ENTRY.

I am continually amazed that people let numbers on a piece of paper TELL THEM that their life is over.  WTF, is that credit card balance going to jump off the page and physically strangle you?  It's a freaking ABSTRACTION; it has NO corporeal form.

The West figured this out; just create money if you don't have it.  Fuck "international finance."  ANYone can run a credit bubble or a fractional scam or invent debtmoney out of thin air.

The TRICK of the West and the banking Clan has been to convince people to REPAY the fictional paper with real assets.

Imagine you are a goldsmith with NO gold.  That's a major bank of today.  NO assets.  Yet you can lend to infinity without regard to what YOU have.  You get to invent money in the form of debt obligations.  Why should ANYONE take your notes seriously?  Why does anyone take the FRN seriously at this point?  There's no inherent, mandatory nexus to reality implicit therein.

So our "goldsmith" who actually doesn't smith gold and has none, makes loans that the rubes in the village treat as having real worth.  Then, for whatever reason, they default bc the ponzi ends.  You HONESTLY mean to tell me that people are SO STUPID that they will GIVE this bankster all of their REAL property, their daughters, their cattle, and whatever else the "loan" was collateralized with?!??!  That's not freaking "banking," that's outright FRAUD.  You get a CONMAN who convinces people to treat fictional paper as real then he ends up owning the entire village and having everyone as a debt serf??

Lemme ask someone something:  wtf is the BANK'S side of the loan collateralized with??  They have no collateral, no reserves, no assets, a negative worth...yet they continue to lend and demand interest.

MaxPower's picture

I feel your existential pain. I go to sleep every night fully convinced that the insanity can't get more insane.


Yet, every morning, I end up spitting out perfectly good tea as I am proven wrong by the day's headlines.


"That's my third monocle this week. I really must stop being so horrified."


Ned Zeppelin's picture

Be easy if they had their own currency.  Doubt if they have Euro pinters available to them. Only the "real" Euro countries have access to them.

Commander Cody's picture

Fractional reserve banking - ain't it a wonderful thing.  The world financial system is predicated on the notion that fiat money is worth something and convincing everyone of it.  Now, if the world's population suddenly gets this, the banksters are out of business.  How funny would that be?

asteroids's picture

OPA! More plates breaking. Now that Easter has past its time to get dancing again.

EllisWyattOTC's picture

Greece Fire "Burn Baby, Burn!"

virgilcaine's picture

The yield on the Greek 10-year bond advanced 14 basis points to 7.16 percent as of 2:12 p.m. in London.


“A default may be ultimately unavoidable,” said Stephen Jen, a managing director at BlueGold Capital Management LLP in London. “It’s an increasingly difficult proposition for the creditors to expect full repayment.”



doggis's picture

........."speak the truth or make your peace some other way"

trav7777 you speak the truth!

zero intelligence's picture

The graph shows we're already over 450.

ZackAttack's picture

Release the Kraken!

Leo Kolivakis's picture

I can't read this anti-Greek propaganda. You guys have no idea about what is going on in Greece. It's actually disconcerting reading this nonsense. Even Greek television hit it on the head this morning: the crisis right now is mostly psychological. Get over Greece, and keep your eye on the real debt woes developing in the United States.

patience...'s picture

I think I would have to agree Leo,
small fish not even a good fillet.

knukles's picture

Can I swap my Dubi-Dubi-Do-Nikeel even?  Get out of that looser!  Who wants a 20 year workout.  Oh.  Yeah.  If its good enough for the Fed's Zimbabwe'd balance sheet should be good enough for us too, eh?
What dollar?

Us too, Brutals?

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