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Irish 10 Year Bonds Take Out Stops, Yield Surges Past 10% For First Time In History

Tyler Durden's picture


Now that Europe is expected to keel over any minute, starting with the collapse of the Portuguese government, and proceeding right through the bankruptcy of Ireland, the market is starting to once again wake up. The first snooze button: Irish 10 Year bonds just passed above 10%, with numerous stops hit (see chart) for the first time in history. For all those who missed Citi's recommendation to buy Ireland CDS in advance of an event of default, the report can be found here. Said CDS are still a bargain offered at 630, considering they hit 680 in January.



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Wed, 03/23/2011 - 09:25 | 1089547 Jason T
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"If the Irish government does what it says it intends to do, which is its legitimate right, which is to deny their obligations to meet the debt of foreign banking institutions operating on Irish soil, run by the British Empire's Inter-Alpha Group, that means the toppling of the entire damned system," Lyndon LaRouche stated yesterday."

Could Ireland be the "King Edward III" of todays global banking system?

Wed, 03/23/2011 - 09:25 | 1089554 cossack55
cossack55's picture

I would be happy if they just became Iceland #2.

Wed, 03/23/2011 - 09:34 | 1089597 docj
docj's picture

Hear! Hear!

Wed, 03/23/2011 - 10:01 | 1089713 unwashedmass
unwashedmass's picture


go for it, ireland. you don't owe the money...don't let them rob you

Wed, 03/23/2011 - 09:44 | 1089639 silvertrain
silvertrain's picture

Iceland is doing great now..Even started prosecuting some of the players that caused the shit in the first place..h/t to iceland...

Wed, 03/23/2011 - 09:56 | 1089679 Debtless
Debtless's picture

So how long until Iceland gets put on the Terrorist list and we start invading them too?

Wed, 03/23/2011 - 10:01 | 1089709 silvertrain
silvertrain's picture

they dont have re's or oil..there safe for now..Maybe later will invade for there clean h2o...

Wed, 03/23/2011 - 10:12 | 1089779 Debtless
Debtless's picture

Excellent point.

Wed, 03/23/2011 - 10:48 | 1090050 fx
fx's picture

Why invade later if you could buy them up today for even less than a song?

Wed, 03/23/2011 - 10:34 | 1089909 barkster
barkster's picture

much easier to haarp their volcanoes...

Wed, 03/23/2011 - 10:35 | 1089934 Herman Strandsc...
Herman Strandschnecke's picture

Iceland are in Hot Water. In a nice kinda way.

Wed, 03/23/2011 - 19:22 | 1092722 Buck Johnson
Buck Johnson's picture

They should do that, I don't see why they haven't.  I think that many of the nations leaders and big business players are in tight with the supra national banks and groups and they tend to do their bidding rather than what their country needs or wants.  Ireland has close to 7 million people all total.  And if you take away the retired or underage etc., you may have a working population of 3 to 4 million people.  That isn't enough people to pay back in taxes the debt that the international banks want, Ireland owes hundreds of billions of dollars in debt (much of it private debt via construction loans and every other loan you can think of, actually I read somewhere that privately they owe 1.2 Trillion).  The EU is doing everything they can from these countries just saying screw it we default and we won't pay this debt, see ya.

When this game ends, it will end with a loud bang. 

Wed, 03/23/2011 - 09:26 | 1089550 Misean
Misean's picture

Creditanstalt keeps drifting through my mind. Dunno why...

Wed, 03/23/2011 - 09:25 | 1089552 doomandbloom
doomandbloom's picture

Everytime the $ falls below a particular level...bad news from Europe start ...been happening for some time now...

Wed, 03/23/2011 - 09:28 | 1089560 Quintus
Quintus's picture

Pure coincidence.  Honest.

Wed, 03/23/2011 - 09:25 | 1089555 Turd Ferguson
Turd Ferguson's picture

In a stunning coincidence, this happens just in time to bring the POSX (usdx) back from the edge of the abyss.

Wed, 03/23/2011 - 09:29 | 1089568 JLee2027
JLee2027's picture

LOL. Good catch.

Have to wonder how long this can play this game successfully. Already "the bounce" seems less and less each time.

Wed, 03/23/2011 - 09:34 | 1089577 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

At the end of last year, 2010...

Lindsey Williams said the powers that be plan to collapse europe first and then the $dollar (the $dollar being completely dead by the end of 2012).

He also said oil to $150-$200 a barrel because of middle-east troubles. Nice call there so far.

All an orchestrated collapse. When you're looting/robbing, it's always best for it to be organised and preplanned.

Wed, 03/23/2011 - 09:48 | 1089656 john39
john39's picture

and then burn it all down when you are finished, leaving the peasants to fight among themselves about what happened.

Wed, 03/23/2011 - 09:58 | 1089690 snowball777
snowball777's picture

Could not give two shits what a crackpot preacher had to say about finance.


Wed, 03/23/2011 - 12:17 | 1090689 gorillaonyourback
gorillaonyourback's picture

so does that make caring about what bernanke says is different?

Wed, 03/23/2011 - 09:26 | 1089557 Josh Randall
Josh Randall's picture

I would buy and bet on the Irish people if there werent PM's like Silver and Gold to get me that 10% and then some

Wed, 03/23/2011 - 09:26 | 1089558 JLee2027
JLee2027's picture

With Asia (Japan) already melted down, if Europe keels over, the US is next.

Wed, 03/23/2011 - 10:42 | 1089998 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

That is the plan. Europe, Japan and China all collapse. The US is then up. If all the other sovereigns have defaulted, who does the US default upon? Its own citizens.

Wed, 03/23/2011 - 09:29 | 1089559 doomandbloom
doomandbloom's picture


Wed, 03/23/2011 - 09:28 | 1089562 Advoc8tr
Advoc8tr's picture

Help me out here .... don't have access to CDS  Who has the largest exposure to the Irish debt? Which banks / indicies get hit hardest?

Wed, 03/23/2011 - 09:28 | 1089570 cossack55
cossack55's picture

Why, the taxpayers, of course.

Wed, 03/23/2011 - 09:35 | 1089603 Advoc8tr
Advoc8tr's picture

My mistake, meant to say "which GGE (gov guaranteed entity) is most likely to require bailing out by some new taxpayers if the debt the Irish tax payers were lumbered with defaults?


Wed, 03/23/2011 - 09:48 | 1089647 silvertrain
silvertrain's picture

it doesnt matter, they all mark to market shit...

Wed, 03/23/2011 - 09:29 | 1089573 Quintus
Quintus's picture

This graphic illustrates the situation quite well.  It shows debt exposure by country, but figuring out which specific banks are holding most of the debt shouldn't be too hard.

Wed, 03/23/2011 - 09:41 | 1089620 Advoc8tr
Advoc8tr's picture

Excellent ... thanks.

Germany, Spain and Brittain are looking pretty shabby with both Ireland and Portugal spluttering?

Wed, 03/23/2011 - 09:45 | 1089636 Quintus
Quintus's picture

Indeed.  Which is why Ireland has them over a barrel in terms of re-negotiating the terms of the so-called 'Bailout' last year.  

Would Merkel and Sarkozy really take the chance of Ireland deciding to default on debt of that magnitude?  They can't afford to.  If they push their current grandstanding brinksmanship too far for local political reasons, they might just end up crashing the Euro, the Eurozone banking system and, of course, the global banking system.

Wed, 03/23/2011 - 09:55 | 1089678 Advoc8tr
Advoc8tr's picture

Even if they do negotiate a haircut their (German, Brittish) banks and sharemarket will surely take a significant hit. If the only danger going short is that the Irish accept the debt and work extra hard to pay more taxes to service said debt ..... It's a pretty safe bet :-)

Wed, 03/23/2011 - 10:10 | 1089730 Iam_Silverman
Iam_Silverman's picture

"Even if they do negotiate a haircut their (German, Brittish) banks and sharemarket will surely take a significant hit."

That is why they would never negotiate a reduction on the principle, they will just arrange for a payback over a much longer timeline, with a somewhat lower interest rate (and probably some ECB or IMF underwriting thrown in).  Their interest rate will still most likely remain punitively high, but not unbearable.  Changing the terms of their debt makes so much more sense.  Once they get through that, the bond pump-monkeys will be all over the deal.  They will crow about the need to rebalance your portfolio and include more sovereign debt - because it has proven to be secure, and offer a reliable return over time.

At best, with new terms the banks holding Irish debt will be allowed to "Mark to Model", and no losses will have to be realized in their holdings.  It's all a game, and they make the rules to ensure a win every time.

Wed, 03/23/2011 - 10:12 | 1089778 EscapeKey
EscapeKey's picture

Don't forget the "sweetener" usually thrown into the deal, a couple of billion for the politicians to use now, to buy votes.

Wed, 03/23/2011 - 10:22 | 1089834 Iam_Silverman
Iam_Silverman's picture

"a couple of billion for the politicians to use now, to buy votes."

Now, is that money payable to the electorate, or to those who are charged with counting the votes?

"It's not the people who vote that count. It's the people who count the votes." (Josef Stalin)

Nice quote, but has not been validated as attributed.

Wed, 03/23/2011 - 09:58 | 1089695 ebworthen
ebworthen's picture

Holy Hannah!

Italy owes $1.4 trillion, $511 Billion just to France!

Now I know why France was jumping into Libya.


Wed, 03/23/2011 - 09:31 | 1089581 99er
Wed, 03/23/2011 - 09:34 | 1089585 High Plains Drifter
High Plains Drifter's picture

shall we take a moment to mourn the passing of Elizabeth Taylor, a great actress and a babe in her own right. Thanks for the memories..........

Wed, 03/23/2011 - 09:40 | 1089616 Dr. Richard Head
Dr. Richard Head's picture

You think that is something, how about Lingerie Football League tryouts this Sunday.

Are you not entertained? 

Wed, 03/23/2011 - 09:41 | 1089621 docj
docj's picture


Wed, 03/23/2011 - 09:42 | 1089624 gwar5
gwar5's picture

Er .....thanks for the mammaries?

Wed, 03/23/2011 - 09:46 | 1089641 Alienated Serf
Alienated Serf's picture

you beat me to it.

Wed, 03/23/2011 - 09:47 | 1089651 High Plains Drifter
High Plains Drifter's picture

Yes she was au naturale, no plastic involved on that body....ha ha ha

Wed, 03/23/2011 - 09:45 | 1089638 Alienated Serf
Alienated Serf's picture

thanks for the mammaries.

Wed, 03/23/2011 - 09:32 | 1089587 Oh regional Indian
Oh regional Indian's picture

The Irish are unfortunately squarely in the cross-hairs of the syndicate.

Once the IMF has their claws/fangs deep enough inside, watch it become another victim of the IMF debt-grip. The faster you rise (Ireland was astromonmical story), the harder, faster and deeper they will fall.

And whiel Ireland is meddled with, keep an eye on Spain, the big Kahuna, the one that will shake Europe and South America.

Isn't glow-ball-ization just grrrrreat?


Wed, 03/23/2011 - 09:33 | 1089591 oogs66
oogs66's picture

At this point only the dumbest banks, those most closely associated with their own governments and who have no mark to market. 

Wed, 03/23/2011 - 09:33 | 1089592 X. Kurt OSis
X. Kurt OSis's picture

Citi will be the only one profiting from this. Look for a volume surge on a big buyer in cash bonds just before the ECB comes to the rescue.

This market is so rigged that if the TBTF's are saying periphery Europe is going down, I can guarantee they are not.

Wed, 03/23/2011 - 09:35 | 1089593 TwoShortPlanks
TwoShortPlanks's picture

Ummmm, this may or may not be a dumb question, but, how high does Ireland intend setting their rates if Yields are topping 9.9-10%?????????


This is like borrowing from Peter twice to pay Paul once.

Wed, 03/23/2011 - 09:41 | 1089625 disabledvet
disabledvet's picture

you mean "robbing Peter to pay Paul."

Wed, 03/23/2011 - 09:50 | 1089662 TwoShortPlanks
TwoShortPlanks's picture

No, only Central Banks can truely Rob.

Wed, 03/23/2011 - 09:38 | 1089604 oogs66
oogs66's picture

There is a pretty clear spike in PIG yields around 9:30.  Portugal also spiked wider.  Someone try to sell a lot?  Someone try to see how deep the bid is?  Is the ECB buying again?  Maybe they will be major holder when the PIGS finally do the right thing, and default.  Remember, credit is always liquid, til it isn't.  Its not a real market like stocks so it can gap hard and fast.  Be careful.  Might not be a bad time to sell out of U.S. HY holdings as signs of weakness there too.

Wed, 03/23/2011 - 09:43 | 1089629 disabledvet
disabledvet's picture

Libya, Libya, Libya....

Wed, 03/23/2011 - 09:39 | 1089612 jkruffin
jkruffin's picture

EUR (aka US stocks) rolling over.......looks sick like it has radiation are heading into the abyss

Wed, 03/23/2011 - 09:38 | 1089613 Republican Lackey
Republican Lackey's picture

Is the collapse of the eurozone inflationary?

Wed, 03/23/2011 - 09:38 | 1089614 trendybull459
trendybull459's picture

This is a start of the FED plan re-install $ face value domination in parallel v printing presses,FED and MAfia ruling the EU countries down,because concurent Euro is like a bon in the FED throat.Qaddafi wanted to trade oil in Euro's and US started War,why?Because it put the question about $ monetary global dominance as reseve currency,watch out now country after country EU deflate into pieces.IF russian would not be so greedy and stupid in their voernment,it could be stop dollarisation inflation,but who cares today-we leaving as no tomorrow,like under gypnose

Wed, 03/23/2011 - 09:43 | 1089627 johny2
johny2's picture

I may be too cautious, but I have feeling about JPM and CITI talking their own book and setting up a spetacular shortenburnen trap here. The EU will probably fall, becouse this world is not big enough for 2 reserve currencies, but the timing of this is a secret, known only to insiders.

Wed, 03/23/2011 - 09:49 | 1089653 X. Kurt OSis
X. Kurt OSis's picture

Bingo. Consider that regulators can't detect the most spectacular insider trading and fraud cases. What do you think happens in FX and sovereign debt where there is almost no rules to begin with?

Wed, 03/23/2011 - 09:42 | 1089628 X. Kurt OSis
X. Kurt OSis's picture

This just in: Trichet has called in all the helicopters and loaded them with euros, whiskey and lamb kidney pies.... Euphoria to commence in Ireland any moment. Citi to cover its short in 3, 2,....

Wed, 03/23/2011 - 09:44 | 1089637 hugovanderbubble
hugovanderbubble's picture



BIG SELLERS (no domestic bond buyers...)

Wed, 03/23/2011 - 09:44 | 1089640 Alienated Serf
Alienated Serf's picture

Bus bombed in Jerusalem.  I like forward to the junkfest thread it will make.

Wed, 03/23/2011 - 09:46 | 1089643 John McCloy
John McCloy's picture

CNBC Just told me AIG only has 500 million in Japan Earthquake exposure. Sure

Wed, 03/23/2011 - 09:56 | 1089681 EscapeKey
EscapeKey's picture

The rest is with the NY Fed.

Wed, 03/23/2011 - 09:49 | 1089652 Bazooka
Bazooka's picture

I am a USD bull....consensu now shows that nearly 97% sentiment bearish, not a bull to be found on the dollar.

Almost everyone is so sure of hyperinflation, not a deflationist to be found.

I believe the dollar is ready to stage a multi-year bull run. Mostly because consensus sentiment is so bearish and when bears are on the same side of ledger, you want to be on the other side.

Also, whether you like it or not, global debt is still dollar based. Dollar is still reserve currency.

When social mood turns from this brief reflationary period, deflation will again ravage this nation and Europe.

Remember, deflation is credit implosion and credit and actual physical dollar is inherently different. When credit implodes, the physical dollar is more cherished.

Wed, 03/23/2011 - 09:53 | 1089672 John McCloy
John McCloy's picture

I love the dollar Ben cannot let it go much further.

Wed, 03/23/2011 - 09:55 | 1089676 SheepDog-One
SheepDog-One's picture

Forget it, thats not the plan. Take down of Asia, takedown of Europe next, takedown of US soon after. By end of 2011!

Wed, 03/23/2011 - 09:59 | 1089687 EscapeKey
EscapeKey's picture

2006 figures state 40% of global debt is USD based, 28% is Euro based. The USD has been sliding for years in the debts, security issues, and invoicing currency markets.

As for multi-year bull run... hahahahahahahahhahahahaha, what are you trying to secure a job interview with the Federal Reserve?

Wed, 03/23/2011 - 10:05 | 1089732 Republican Lackey
Republican Lackey's picture

You are very smart man.

Wed, 03/23/2011 - 09:51 | 1089667 caconhma
caconhma's picture

The only question I have is how far will all these "democratically" elected governments go in betraying their own people?

Apparently, these governments are a part of a "New World Order" when the jewish-controlled central-banking cartel enslave the entire world.

This shit has to be stopped somewhere. Who will it be? Ireland, Spain, China, etc.,?  But inevitable it will happen.

Wed, 03/23/2011 - 10:00 | 1089702 gwar5
gwar5's picture

This is why Ireland is pissed and elected a new government in a big way last month. Rates are higher as the new sheriff could default on the EU. Self-fulfilling at this point? 

Maybe the PIIGS need to gang up on the EU and take their countries back instead of letting themselves get picked off one by one. 

They could have an emergency PIIG summit.





Wed, 03/23/2011 - 10:20 | 1089817 ivars
ivars's picture

There are more and more double dip recessions coming forward (UK, New Zeeland, Japan) so If Portugal goes Irelands way which itself goes Iceland way, you can buy the dip at DJIA 10500 in May but beware to SELL in June at 11500 before stocks go down from July 2011-March 2012 and beyond. See this February 6th chart which predicted the dip on February 18th, and also continues to predict the current and coming dip to 10500 in June, but also predicts second recession in the USA in q1 2012 and decline in stocks prior to that to 9500 in 2011 and 7500 in March 2012:

Basic reason for second recession on top of all other "black swans" - Oil prices-also february 6th graph-let us see if the second peak in April ( Brent 125-130 USD) is also timed correctly:

Wed, 03/23/2011 - 10:49 | 1090044 fx
fx's picture

Why invade later if you could buy them up today for even less than a song?

Wed, 03/23/2011 - 11:22 | 1090334 NotApplicable
NotApplicable's picture

So, what you're saying is that AIG is gonna need trillions in liquidity once a credit event kicks off the cascading defaults. All of which will be paid to the high-rollers in the casino.

This is beyond criminal.


Wed, 03/23/2011 - 11:55 | 1090520 ebworthen
ebworthen's picture


J.P. Morgue chief economist on CNBC just now saying that Portugal and Ireland won't effect U.S., it is a peripheral issue, no problem, everything will be fine. 

At the end he drops the "but the problem for the U.S. is our debt and the debt ceiling".  Translation:  "The banks must have QE3 and unlimited milk from the teat of the FED at the expense of every working family."

Ah yes, the "if you don't bail us out from our own malfeasance everything will crash" line.

Good, let's start with crashing the lives of the bankster elites, one neck line at a time.


Wed, 03/23/2011 - 12:30 | 1090752 Martin T
Martin T's picture

Tyler get your facts right and do your homework...This is not the first time in history Irish ten year bonds have reached a yield of more than 10%:

"From 1991 until 2010 Ireland's Government Bond Yield for 10 Year Notes averaged 5.72 percent reaching an historical high of 10.47 percent in December of 1992 and a record low of 3.06 percent in September of 2005."

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