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Europe Limps Higher After Italy Auctions Debt At Four-Month High Yields

Tyler Durden's picture




 

And yay verily there was much rejoicing that Italy managed to sell a few billion euros worth of its sovereign debt to its banking system (albeit at the highest accepted yield since October 2012). However, the rejoicing was hardly effusive as bonds and stocks gained only marginally, buoyed by catch-up from yesterday's US equity markets. Swiss 2Y rates remain at zero and EUR-USD basis swaps came back a little but overall this bounce is nothing to celebrate with Italian 10Y spreads still 47bps wider on the week and Spain 23bps wider. Italian stocks outperformed credit, now down 2.6% on the week as Europe's VIX followed US down but remains above Monday's close at 22%. EURUSD ran up to test the 1.3130 stops and faded back to its comfort zone around 1.3100. As a reminder, European bank spreads are holding at their widest in 3 months and point to notably weaker prices in European financial stocks (were of course they allowed to trade in a free non-short-sale-banned market).

 

European credit market remain considerably less sanguine than stocks - especially in financials...

 

but today was small gains for the high-beta segments of Europe - though in context no BTFD mentality came soaring back...

 

Charts: Bloomberg

 

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Wed, 02/27/2013 - 12:54 | 3282137 Divided States ...
Divided States of America's picture

These fuckin charts are useless....I see credit underperforming every fuckin day for the past what 3 fuckin years! This is useless shit

Wed, 02/27/2013 - 13:00 | 3282158 Abraxas
Abraxas's picture

Everything is underperforming, and I mean EVERYTHING. Even gold and silver... even my Johnson has been underpeforming lately. Thank god nobody publishes that chart. Pitiful.

Wed, 02/27/2013 - 13:11 | 3282192 gjp
gjp's picture

Well the growth-at-any-price tech names definitely aren't underperforming.  LNKD just tacked on an extra billion in market cap today, about equal to the next four year's cumulative earnings, what a farce.  CRM, AMZN all joining the party belatedly.  Macro doesn't matter, fundamentals don't matter, this is no limit poker and everyone is playing with house money.

Wed, 02/27/2013 - 14:13 | 3282421 MassDecep
MassDecep's picture

Nothing like a good ole dose of chemtrail to squelch the johnson..

http://youtu.be/jf0khstYDLA

Wed, 02/27/2013 - 12:57 | 3282143 scatterbrains
scatterbrains's picture

Speaking of limp, free markets are dying..

http://fiatflaws.blogspot.com/

Wed, 02/27/2013 - 13:02 | 3282149 mdtrader
mdtrader's picture

It's all useless. Sterling has been battered lower, so has the yen, the euro is looking weak and they are all buying US stocks. How is that gonna work out for S&P earnings when they plug the new currency figures into the balance sheets? Huge outside day reversals and none of it matters. All it takes is a juiced up bunch of lemmings and algos and we are off to the races.

Wed, 02/27/2013 - 13:02 | 3282164 HD
HD's picture

...and the S&P almost back to the highs.  They are making a point to push everything up after Italian vote. Can they keep it up (insert dick joke)?

Wed, 02/27/2013 - 13:12 | 3282171 firstdivision
firstdivision's picture

Speaking of Europe, with LIBOR found to be a fixed fraudulent number, what happens to all those $200T IR contracts tied to it?  Are the contracts null and void as it is based on a fraudulent number, there by making the entire contact fraudulent?

Wed, 02/27/2013 - 13:07 | 3282182 Mark123
Mark123's picture

This market is one big contradiction....

 

It goes up because the Fed will keep creating new money for 0% interest for as "long as it takes" to create inflation and speculation.....yet there will be no inflation ever (gold falls).  The Fed is now creating the full amount of the US govt deficit.

 

Somehow, "investors" are expected to buy this argument.  Well, I guess most of us are stupid, so carry on.

 

 

Wed, 02/27/2013 - 13:12 | 3282199 McMolotov
McMolotov's picture

These daily contradictions demonstrate one simple fact: This non-stop levitation is meant to lure Joe Schmo into the market so he can be the one left holding the flaming bag of shit when everything goes to hell.

Wed, 02/27/2013 - 13:19 | 3282220 kurzdump
kurzdump's picture

Ctrl-P money only inflates the wealth of the upper 1%, there's not much left to "steal" from the remaining 99%. So the only solution to keep this so called economy running is to stretch maturities, hence enslave the working class forever. Wont work however. Better prepare for massive deflation.

Wed, 02/27/2013 - 13:45 | 3282311 TraderTimm
TraderTimm's picture

What does that silly ghog site have to do with "Der Speigel"?

Oh that's right, you're just a link-baiter.

Wed, 02/27/2013 - 13:12 | 3282195 davhay
davhay's picture

Rand Paul is a ASSHOLE!!!!!!!!!

Wed, 02/27/2013 - 13:13 | 3282202 Critical Path
Critical Path's picture

So how far down the road (next quarter, next year?) do we find out Ben was loading up the Fed balance sheet with Italian bonds on February 27, 2013.

Wed, 02/27/2013 - 13:33 | 3282267 thismarketisrigged
thismarketisrigged's picture

why the fuck are the u.s markets up this fucking much?

 

all the losses on monday have been wiped away, and we r fucking positive for week by noon wed.

 

i want to punch someone

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