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Euro Slumps To 15 Month Lows As BTPs Crack 7% Yield
With plenty of time left until France unleashes its supply (and a dismal consumer confidence print earlier), there is a plethora of notable market moves: Unicredit is halted down 7.9% (seems to be the culprit for the initial risk-off turn in Europe), but Deutsche Bank is down over 5% on liquidity problem rumors, EURUSD traded under 1.2850 at its lowest level since September 2010, 10Y Italian bonds have pushed well above 7% yields and 510bps spread to Bunds as Unemployment rises to 8.6%, Belgian 10Y yields are over 4.5% - highest in 3 weeks, and the rest of European Sovereigns are all leaking wider (near wides of the year). Risk assets (CONTEXT) broadly are under pressure but ES (the S&P 500 e-mini futures contract) is holding off yesterday's early morning lows for now. Commodities are all dropping fast with Gold (actually outperforming in this slide) back at $1615, Oil at $102.50, and Copper approaching $340. Treasuries are bid but trading in line with Bunds' movements so far in general. Some chatter of ECB buying in the last few minutes is stabilizing things a little here.
EURUSD touches 15 month low
Sovereign spreads are wider across the board - some chatter of ECB buying in the last few minutes is stabilizing things a little.
CONTEXT, the broad risk asset proxy, was pointing to weakness after the US day session close and ES has pulled to it and resynced. It appears we are holding at these levels for now as we face up to France's auctions within the hour.
Charts: Bloomberg and Capital Context
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I knew I should have traded the few Euronotes I have for monopoly money last summer.
Now I'll be lucky to get Zimbabwean bucks for 'em.
The Zimbabwian Dollar is backed by the full faith and credit of the Zimbabwian government.
The Euro is backed by the full faith and credit of.... NO ONE.
And that's the difference:)
As government budgets are swollen
The wealth of those nations is stolen
Do The Powers That Be
Have a plan for poor me?
Ouch!....(something just hit my colon!)
LOL one of your best, my compliments
a word from the wise of the past: currencies lubricate the economy...
Thanks Ghourd! I agree....the World's Assets have been fully lubricated by worthless fiat.
Pretty soon all that liquidity won't be worth spit.
I appreciate your humor but fear you know not the gravity of the situation. European leaders need to stop dilly dallying, get round the table, and sort out this mess fostered upon us by greedy unregulated capitalists. I work for the government regulaiting small industries. Sometimes I throw in some tougher legislation myself, on my own back, just to help raise a little more revenue in order to help the cause. I also have a significant amount of my portfolio in soverign debt; so you could say I'm doing my part at both ends... Are you doing yours?
Sure I am.
I'm buying popcorn!
I'm blowin' bubbles! Mmmm, bubbleicious!
I'm waving my Euro foam finger! I'm doing my part!
Sovereign debt? I'm not touching that toxic stuf....gold in my hands is the only thing I thrust. Oh...and socialist governments are to blame as well, not only 'greedy unregulated capitalists'.
Is that really you Captain?
I thought you were busy circling Uranus looking for Klingons......
"I work for the government regulaiting small industries. Sometimes I throw in some tougher legislation myself, on my own back, just to help raise a little more revenue in order to help the cause."
So you are part of the problem.
This mob will want to roll a very large amount of debt this Month and the next three
Its going to be very difficult to accomplish now the genie is out of the bottle.
Black (money) holes and revelations.......
another fudge PMI for the year and its the UK. I think that is all of them? And China started the trend on the 1st Jan...amazing stuff. oh well back to reality 1.29 support on the EUR gone, ECB buying good before the Frenchy auction...remember 99% of the EZ is dumping risk. Good luck french, but you are f*cking done.
and US markets your crack up boom BS for Jan. Finished.
EFSF 3yr @ swaps +40. ROFLOL!
One of the biggest guarantors in this ponzi circle jerk, Italy, is trading somewhere around swaps +350 in 3yrs.
Hahahaa!
Look
Austrian Bonds sir.
Yep, 10yr up 40bps since the start of the yr. The long forgotten ghost of eastern europe is back haunting...
And, despite the unimportance of the country in general, check out the HUF!
Oh, it's ok. There's another Eurozone meeting scheduled. Everyone just calm down. Haha oops. Welcome to 2012.
US futures getting crushed, as well.
boom
Calm before the storm is usually the case on a big event like a French auction in the current climate.
However, there is no calm at the moment. Panic is already starting to set in, with the 2nd suspension in two days for Uni Credit. Euro dropping like a stone.
But, and this is a big but, will this time be different. Will the markets move towards a proper correction, or will we see a downwards slide today, only for a rise tomorrow, after Kazakhstan releases 0.00001% growth??
As if by magic
BREAKING NEWS...
10.07 France sells 40y bonds at average yield of 3.97pc versus 3.94pc in December. Sells 10y bonds at an average yield of 2.29pc against 3.18pc in December. But demand halves.
France lost AAA
Hungary kaput
Austria to lose AAA
ALERT permabullish¡
patience Hugo v.d. B. Less than 16 hours away now.
What is a BTP?
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