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EFSF Issuance Proclaimed Success Even As Risk Hits 4 Month Highs
The EFSF 'firewall' issued EUR3 billion 7-year bonds this morning. It seems any time any European entity actually manages to issue debt, it is proclaimed as miraculous evidence of investor demand and comfort with these risks. In this case, we are told, via Bloomberg, that:
- *EFSF SAYS BOND ISSUE MET WITH STRONG DEMAND
- *EFSF SAYS SUPPORT FROM ASIA, CENTRAL BANKS, SOVEREIGN WEALTH
So the self-dealing continues to grow the ponzi ever bigger. However, what few will mention is that 10Y EFSF spreads (the risk premium over Bunds to hold these government-guaranteed exposed-to-Europe's-entrails) broke above 150bps today for the first time in over four months and are now over 35% higher than at the start of April. Success Indeed.
Chart: Bloomberg
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"EFSF Issuance Proclaimed Success"
Reminds me of a Mission Accomplished banner I've seen some place. My guess is that one is about as accurate as the other.
The farce is strong with this one.
You say that like it isn't miraculous -- I kind of think it is.
I recall reading about this band of Vikings from Finland that only ever attacked one coastal town in Sweden -- over and over. Every time they showed up, the Swedes had rebuilt and the Finns -- who always expected to find them gone -- were stunned to find that they were sitting right there, waiting to get beaten up and burnt down. Again.
It's a bit like Stolper's client list -- are they really still there getting 'muppet-ed' over and over?
Noda is watching, watching, watching, grabbing EFSF ponzi bonds and back to watching, watching, watching...
Would it be a sign of good news if the EFSF was hiring? Y'know, job growth and all...
Anything to get thru just 1 more day. Same story tomorrow as well.
SD, you seem a bit down today. I might suggest a full frontal rant.
The joke telling continues unabated. This will be fun to watch these jackasses scrambling to cya when this goes under.
Was that demand from the banks, using BIG BEN (Fed) money they got thru those swap lines? I know we are never deceived, but there has to be a first time.
It is indeed comforting to note that amid all the turmoil, the Central Planners are resolute and unfazed, continuing to execute their prime directive of continuous printing.
US and Europe...
Ponzi tag team partners.
Not one "individual investor" bought one.....just Governments and Central Bankers....the new world market...we little folk are not allowed to play anymore...nor can we..7 years at 2%...lol
They lie to keep their jobs.
Strong support from central banks and government operated sovereign wealthfunds, huh? Yep. That certainly sounds like strong support to me.