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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Jason T's picture

"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?

cossack55's picture

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

unwashedmass's picture


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

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...

Debtless's picture

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

silvertrain's picture

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

fx's picture

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

barkster's picture

much easier to haarp their volcanoes...

Herman Strandschnecke's picture

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

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. 

Misean's picture

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

doomandbloom's picture

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

Quintus's picture

Pure coincidence.  Honest.

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.

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.

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.

john39's picture

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

snowball777's picture

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


gorillaonyourback's picture

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

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

JLee2027's picture

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

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.

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?

cossack55's picture

Why, the taxpayers, of course.

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?


silvertrain's picture

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

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.

Advoc8tr's picture

Excellent ... thanks.

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

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.

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 :-)

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.

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.

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.

ebworthen's picture

Holy Hannah!

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

Now I know why France was jumping into Libya.


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..........

Dr. Richard Head's picture

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

Are you not entertained? 

gwar5's picture

Er .....thanks for the mammaries?

High Plains Drifter's picture

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

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?


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. 

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.

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.

disabledvet's picture

you mean "robbing Peter to pay Paul."