Irish Bund Spreads Hit Lifetime High Of Over 500 bps

Tyler Durden's picture

The Irish-Bund spreads has just hit a lifetime high of over 500 bps, pushing above 502.75 last. Elsewhere, the EURUSD continues to trade over 1.40 despite the now inversely parabolic drubbing in gold. Then again, what can one expect when Cramer recommend buying it with both hands.

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TheGreatPonzi's picture

Who cares. The ECB will buy the bonds.

Jones79's picture

no they won't--that's why the spread is blowing out!

jus_lite_reading's picture

As I stated on Monday, the ECB would buy them if they could but they have officially run out of resources.

Thus Greek 10yr at 10.99 and rising, Irish at 7.59 and rising. Default for the PIIGS may bring about the spark required to end the global financial system. But what do I know?

TheGreatPonzi's picture

The ECB cannot run out of resources. If they have, they will simply print money, just like your old Bernie does.

As I've already said, this crisis won't reach its peak because of a default or a bankruptcy, but only because of inflation.

Jean Valjean's picture

Bingo, therefore buy gold on this dip.

sunstreaker's picture

Of course they will. Otherwise the ECB will be history. That would be historic. First central bank to abolish itself.

jm's picture

The ECB won't be history.  The pork will be cut.

scratch_and_sniff's picture

Bring on the pain! This has been the most absurd rally in history, every peice of fundamental common sense completely out the window for the promise of some wild liquidity pump, but the truth is i will miss these conditions when they are gone, because fuck knows whats next.

Jean Valjean's picture

Rest assured, it will be interesting.  And at least it will be REAL.  Never fear.

ruffian's picture

does anyone know why gold just tanked? ...thanks

HelluvaEngineer's picture

Dunno.  The dollar just spiked though.  Maybe a bunch of stops got taken out?

holdinmyown's picture

Most likely someone big got news that QE2 would disappoint.

Bananamerican's picture

wasn't it Taylor's newsletter (yesterday) saying "sell AU till early next week"?

I've been expecting another spank the goldbugs moment myself.

The backstory? "Fiscally responsible Republicans to save the Nation, Fight the FED, Impose austerity etc etc" and les initials B.B. to "disappoint" with a smaller QE (initially)


Non Passaran's picture

You never know...

I'm holding onto mine, counting that PIIGS will scare some folks into buying PMs.


Jean Valjean's picture

Could it be the story that Rand Paul will be able to fillibuster the debt ceiling, therefore preventing Treasury borowing from increasing?

bingaling's picture

I would hope so .But dont underestimate the lameducks who will probably raise that ceiling to infinity before he gets into office.

trav7777's picture

you HONESTLY believe he can get 39 other Repugnicon Senators to go along with him????

gookempucky's picture

Right on QQQQ--london close---nothing has changed--all is an illusion.

Horatio Beanblower's picture

I think a butterfly may have just flapped his wings in the JPM building.

breezer1's picture

i'm surprised its not down to 1200 with the next qe just hours away.

HelluvaEngineer's picture

If it gets down to 1220, I'm backing up the truck.

Sean7k's picture

If you haven't noticed- paper dump of all PM's just happened. No event to tie it to. Blew through resistance all the way down to1330. 

ruffian's picture

so just a typical takedown then...I mean equities and dollar barely moved

lsbumblebee's picture

So if this PM takedown is typical, meaning not unusual, how would you describe an unusual takedown?

ruffian's picture

I dont...these verticle plunges in PM's occur periodically  with no corrosponding movement in related or inversely related mkts  eurodollar and equities barely moved therefore there is macro confirmation/ verification/reason for the movement in PM's.....this is typical for a paper takedown

lsbumblebee's picture

So this particular periodic takedown just happened to occur on QE2 day?

ruffian's picture

what better day could there be...scare longs out before a trillion in still warm digital credits...cmon bumbles...are you just playing devils ad. or are you serious?

lsbumblebee's picture

I'm not arguing with you. I'm just trying to understand how you can say this is just your average ordinary old takedown in PM's and it has no significance, today of all days.

ruffian's picture

just because they are typical does not degrade their significance....whenever the BB's feel threatened AND see an opportunity( moment of nervousness ahead of major news event) to scare longs out, this type of manipulation occurs. In fact many of these takedowns occur just beofre or during unemployment #'s ( as per testimony by london trader/whistleblower Mcguire) so indeed todays action is extremely"typical"

lsbumblebee's picture

Okay. I'll agree that this is an unusually typical takedown and leave it at that.


flacon's picture

JPM has to cover it's shorts BEFORE the announcement. 

Strider52's picture

I think the PPT doesn't *ever* want to see POG at $1400, so....TakeDown Biatchez...

Sudden Debt's picture

Strange that ZH doesn't mention the ECB speech where they just announced that the PIGGS will soon need to use the EU emergency funds.


It would have been a scoop :)


The Axe's picture

No one cares....joke

Turd Ferguson's picture

Obviously, Blythe decided to act early. The question is, what does this mean?

To me, the only reason for smashing gold now is this: The EE either knows or suspects that the QE2 announcement is going to be larger than anticipated and, therefore, PMs are going to rally sharply. So, crush the PMs now in order to cover shorts at lower prices before the blastoff.

Again, if anyone doubt the existence of the EE and their influence on today's action, simply look at a one-minute chart of todays' action. Violent one-minute downdrafts galore. Only the EE has the power to overwhelm the bid like that. They are clearly trying and succeeding in dropping price before the announcement. Again, why before? They are clearly afraid of getting their collective nuts and ovaries in a vise this afternoon.

I am very confident of a big price move UP later today.

ruffian's picture

sorry my bad but what is EE?

Turd Ferguson's picture

EE is my term for the bullion bank cartel of JPM, HSBC et al. It stands for "Evil Empire".

ruffian's picture

thanks...BB I would have understood

scratch_and_sniff's picture

Dont be so sure Turd, people could be scrambling to get out of risk in general because they dont think QE2 will be so big. Dont think in conspiracy when your money is on the line dude(even if its true), because it wont be much of a conspiracy when you blow up. Look at what just happened today, people are getting twitchy. But i hope we rally, regardless.

Rainman's picture

......SEC just banned naked access trading......38% of trading volume go poof. 

scratch_and_sniff's picture

Yeah they are going apeshit on the retail traders for some reason.