ECB Deposit Facility Hits €299 Billlion, And Other Key Overnight Session Updates

Tyler Durden's picture

With few notable highlights in the overnight session which has seen futures do the good ole' melt up, the key event being the Italian 10 Year hitting a new all time record yield of 6.73% and a spread to bunds of just under 500 bps, since retracing following even more alleged ECB intervention, the market is in wait and see mode in expectation for the main event of the day: the vote on the Italian budget plan, which will most likely confirm that Berlusconi has far more than 9 lives, if only for the time being. Attached is Bloomberg's TJ Marta summary of the relevant other overnight events as well as what to expect.

  • Italy’s Chamber of Deputies will vote at 9:30am EDT on routine report regarding last year’s budget plan; will determine whether Berlusconi retains a majority in the 630-seat house and can push through austerity measures
  • Italian yields have crossed “dangerous line”, with 10-yr yield rising above those of Greece, Portugal
  • Italian to German 10-yr yield spread 6.3bps tighter from yesterday’s record 488bps; most other EU sovereign spreads to Germany modestly tighter overnight
  • Asia equity indexes mixed in modest ranges; EU bourses up modestly, 0.8 to 1.5%; U.S. futures +0.2 to 0.5%
  • German bond yields moderately higher, led by 2-yr +4bps, Treasury yields mixed, -1.5bps to +0.1bps, with curve flatter
  • FX mixed in modest ranges, with slight skew towards risk aversion as C$, A$, underperform

And while we know that facts don't matter, here is the main chart we could find to start the day, which summarizes why things in Europe are unlikely to get better any time soon: the amount of cash parked by European banks with the ECB just hit €299 billion, the highest since May 2010.

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Cassandra Syndrome's picture

Should be another ramp job today so.... Fundamentals is so 20th century.

UK debt marsh's picture

So true

Instead:  The restaurants are full

They have 120m eyeballs in Italy

This Tempo e Differente

rosex229's picture

Does anyone who why the lending facility deposits come in increasing waves? It goes higher, higher, higher, crashes, then high, cycles.

Is it a book keeping thing? I'm curious because we're near the end of this "cycle" if true.

Ethics Gradient's picture

€299 billion? At least the ECB have something to work with on project "Levitate Italian 10yr bonds".

westboundnup's picture

I'll wait until either (a) the 11 am melt-up, or (b) the 3 pm rumour.

gianakt's picture

Italy to sell some of its Gold reserves.

SmoothCoolSmoke's picture

Little help here; If Burlesconi OUT, Euro does what?   Rally?   Thanks

vegas's picture

With all the headlines over the last week or so, one thought keeps creeping into my head: we are in the endgame of the Euro and ECB. At the very end, what do the politicos do to retain power and the status quo, and who gets hurt as a result?

This isn't going to be smooth or pretty.

Mr. Lucky's picture

299 billion Space Dollars.

HD's picture

When does this crack? Days, weeks, months? We've had down 200 days in the market because the former Steve Jobs didn't attend an Apple launch - now the world hangs by a thread and we just melt up on nothing.

Dick Darlington's picture

Nov. 8 (Bloomberg) -- Following is a summary of Italy’s
October borrowing from the European Central Bank from the
Bank of Italy in Rome.          
                                     Oct.    Aug.   July   June    May  April
                                     2011    2011   2011   2011   2011   2011
                                    ------------------ MoM% -----------------
Total                                6.3%   30.1%  94.8%  34.0% -24.3%  13.0%
 Main Refinancing                    2.8%   28.7% 238.5% 182.3% -65.9%  80.5%
 Long Term                           9.1%   31.1%  45.2%  13.5%  -8.9%  -0.8%
                                  ----------------- EUR Mlns ----------------
Total                             111,288 104,683 80,487 41,315 30,826 40,734
 Main Refinancing                  47,466  46,177 35,874 10,599  3,754 11,015
 Long Term                         63,823  58,506 44,613 30,716 27,073 29,720
 Fine-tuning reverse operations         0       0      0      0      0      0
 Structural reverse operations          0       0      0      0      0      0
 Marginal lending facility              0       0      0      0      0      0
                                     Oct.    Aug.   July   June    May  April
                                     2011    2011   2011   2011   2011   2011
                                 ---------------- EUR Blns ----------------
 Credits related to margin calls        0       0      0      0      0      0
NOTE: Total = Lending to euro area credit institutions related
to monetary policy operations denominated in euro.
Percentage changes calculated by Bloomberg News may
differ from official figures due to rounding.
Levels are end-of-period values and may not sum due to rounding.

Source: Bank of Italy           

mbtshoe's picture

FDIC loan loss sharing details are a total taxpayer ripoff to big money types and billionaires like Soros, Dell, GS execs.   Look up OneWest Bank started by those guys.   FDIC sold them a portfolio at up to 50% discount and the FDIC backs up to 90% of losses, not based on what OneWest paid, but the ORIGINAL amount of loans.  OneWest makes more money not working out any loans and letting them foreclose and cashing in from the FDIC.









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642-524 braindumps// 1Y0-A05 braindumps// 646-205 braindumps// 640-461 braindumps// 640-811 braindumps// 1z0-053 braindumps// SK0-003 braindumps// EC0-350 braindumps//