As Europe Desperately Attempts To Talk Down Bond Yields Further, Bundesbank Finally Says "Nein"

Tyler Durden's picture

Following two days of desperate attempts by the ECB to talk down record peripheral bond yields without any actual action, it is only logical that while Merkel is on holiday, we get a third day of talking to buy some time purely thanks to rhetoric and jawboning, before the Chancellor comes back and spoils the party. Sure enough, here it comes via French Le Monde, whose host nation knows very well that after Spain and Italy, France is next:


More from Reuters:

Euro zone governments and the European Central Bank are preparing to intervene on financial markets to help bring down Spanish and Italian borrowing costs, French afternoon daily Le Monde reported on Friday.


The newspaper, which cited unnamed sources, said the ECB was willing to take part in the action on condition that governments agreed to tap the bloc's bailout funds, the European Financial Stability Facility and the European Stability Mechanism.


Under the plan, the EFSF could be activated first to purchase Spanish and Italian debt on the primary market, followed by the ESM in September, after it becomes operational.


The ECB would at the same time buy Spanish and Italian government bonds itself on the secondary market.


The newspaper said the plan was days or possibly weeks away from being finalised and that officials were holding consultations on Friday about it.

Ah, the good old unnamed sources which always appear in times of need... and of Merkel summer vacations. But while the cat may be away, the Bundesbank has decided to take at least some matters into its own hands:


More from the WSJ:

"Germany's central bank remains opposed to further government bond purchases by the European Central Bank, but isn't against using the euro-zone's temporary rescue fund (European Financial Stability Facility) doing so to drive down soaring sovereign borrowing costs, a Bundesbank spokesman said Friday.


Germany's central bank regards further bond buys by the ECB as "problematic" and "not the most sensible" instrument for overcoming the debt crisis, in particular because they create false incentives for governments, the spokesman said."

And then, just to confirm that nobody in Europe has any clue what is going on and its politicians are once again simply making things up on the fly, we get this:


And the logical response:


Sigh - when one sees such relentless lies and confusion what else can one say but... "Europe."

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LULZBank's picture

NEIN NEIN NEIN Bitchezz!!!

GetZeeGold's picture



Heh heh......if you want my're seriously gonna have to pay me. No......I'm not kidding.


Sudden Debt's picture

I'll give you all the money I have if you give me 1 ounce of silver for every 23 euro I give you. deal?

GetZeeGold's picture



You want real money? Crap........that changes everything.


malikai's picture

All this week's bullshit has only brought the EURUSD cross back to last thursday as of yet. If it weren't for the friday IMF/WB pump-job I'd be short and hard.

Dr Benway's picture

C'mon you gotta see the humour in all this.


The global easing cocktease is approaching climactic apex!

Sudden Debt's picture

it's monkey see monkey says and Schwein beats monkey for doing so.


EscapeKey's picture

Yes, I particularly like that all bad earnings news are just casually discarded.

Apple missed? Doesn't matter.

Facebook is a shambles? Doesn't matter.


Another EU bureaucrat lies through his teeth? RALLY!

gatorengineer's picture

My favorite is the 200 to 1 PE on Amazon......

1000pips's picture

Not do fast. It appears the EU is presenting a unified front to restore confidence just in time for-the Olympics! Just like I have said for months!

U think the Euro if finished, u gotta be crazy. Euro/USD to $1.30 by the end of this quarter. You have been warned.

slaughterer's picture

First off,

(1) ECB does not precommmit, notwithstanding requests for us to "believe" in its commitment to protect the €

(2) "Le Monde" is clearly making it up on the fly--their lies are extraordinary.

(3) What about the 2Q earnings disappointments and the overall macro deterioration?  Does that go away now magically?


Galactic Superwave's picture

This is a sloppy game of chess played by the leaders of Europe. Instead of chess pieces, they use words to try and entice the opposition to make a bad move.

slaughterer's picture

All JUST IN TIME to keep Goldman from stopping out of its latest long Span/Ital sovereign bonds trade recommendation. 

fonzannoon's picture

GS and MS just reiterated their awesomeness reccomendation on facebook. MS was extremely optomistic.

battle axe's picture

Why does anyone listen to anyone but Merkel? If Germans say Nein then that is all she wrote. Blind leading the blind, leading the blind. 

1000pips's picture

Not true at all. U forget that China is the one who decides what Germany will and will not do. Because of this the Euro will be fine. Forget what you think you know. In fact, trade against what you think.

battle axe's picture

Have you seen the numbers from China lately? Even though they lie thru their teeth and are inflated, they still are on a trajectory one way, down. 

put_peter's picture

Coordinated chaos made in Europe.

DavidC's picture

Sigh - I don't swear very often but this is just getting fucking ridiculous.


EscapeKey's picture

The fact that our "glorious leaders" never do anything but lie, or that the market ALWAYS responds positive to said lies?

Ghordius's picture

+1 may I note that calling them "glorious leaders", even in sarcasm, is a bad habit? Most of them are elected representatives of the people. The proper title is public servants.

Having said that, markets take a Central Banker seriously because - until disproven - they have the "street cred" of actions behind their threats. So Draghi is indeed putting something on the balance scales.

GetZeeGold's picture



Sigh - I don't swear very often but this is just getting fucking ridiculous.


Oh just wait......we'll show you full tilt retard. This is nothing.


Sudden Debt's picture

if you see the approach is good enough to fool to lemmings, why not?
It's summer and I don't think people will be all to happy when they come back and massive layoffs await them when the economy explodes.
Let's give the people time untill august to adjust for the beatings that await them.

LULZBank's picture

You mean its gonna get THAT serious in 4 days???!!!

Sudden Debt's picture

the number of big companies that are laying off 5000, 10000, 15000 is quite big actually, It's like every day on the econo sites there are 2 to 3 big once starting to cut.
and when the big once cut, the small onces just go belly up.
the number off businesses going out of business is at a record ALL TIME record high right now here in europe.
I'm going back to work on monday, and I also got the memo to start with the MT meeting first to talk numbers. Before the holliday, we had to give our short lists of disposable people. I didn't give any and so did a lot of other managers. we'll see.

LULZBank's picture

Thank you.

You are quite smart and well informed. I could have never guessed! :D

Ghordius's picture

and he has a heart - pardon, a core - of delicious nougat. I remember the times when he was hoping for low prices of silver for Christmas...

BUT he is Belgian, so let's put some Farage at work

LULZBank's picture

Jeez.. some people are so tense today! 2 down arrows for wtf??

Im a peaceful sort of guy. I got nothing against Belgians.

Yen Cross's picture

 This crap is such a farce! The EFSF/ESM is only funded to the tune of 150-200 b euros. The ECB can't do shit until Germany votes on it. So what if Hollande wants to gab with Merkel? The dip shit algos are just trading tape bombs now.

GS-DickinDaMuppets's picture

WTF!  SOS (Same Old Sh!t)


...Doing GOD's work...GS-DickinDaMuppets

Doubleguns's picture

It would certainly make a great comedy movie. Unless your living through it. Maybe return to a monarchy would be better for Europe. Decisions could then be made.

Haager's picture

Merkel ruling ... Dictatorship is not that different from monarchy.

GetZeeGold's picture



Hey....if you don't want Merkel's money I'm pretty sure you just have to say so.


Bunch of European I just actually say that out loud?


Forget I said delete button doesn't seem to be working this morning......yeah......need to get that fixed.



Sudden Debt's picture

at least in a monarchy, you only need to hand 1 family when the shit falls apart.
Now it will resemble a bankers genocide if they want the hang all the elite!

LULZBank's picture

Lies and broken promises are always favoured by the Feudal classes.

"Baffle with bullshit" and legal complications & loopholes for the Technocrats.

Expecting anything else makes YOU a moron.

mark7's picture

NEIN means Yes unless measured and measurements are not allowed. This is typical Merkel quantum talk.

Neethgie's picture

they are at the final point of the game now, talking the markets into doing it for them, we of course know that this wont work.

but as long as it does for a day or so the eurocrats can drink bollinger in the sun

youngman's picture

I think they know THEY are in the final moments of the game...and are GAMING it....It would not suprise me that these so called leaders are playing the stocks..the FX...the bond markets as they spew the lies to feather their nest....they know in two years they will not have a job nor a reputation...but they also know that if they play the markets here..there is a lot of money to be made and fast...

LULZBank's picture

Nein means Yes unless she crosses her legs.

Even then its debatable...

mark7's picture

I don't see any hot babe photos in the article like in the article saying something about Argentina. This is bullshit! 

LULZBank's picture


We need more than just the pop corn now. This end game is playing out like some soap or sitcom where even the dead characters somehow come back to life.

GetZeeGold's picture



The nanny state is late on my popcorn delivery. I'll just have to sit here and tittle my thumbs until they get here.


I don't see any hot babe photos in the article like in the article saying something about Argentina. This is bullshit!


The hot Argentinean babes are in the process of renegotiating their contracts.......stick tight......maybe tomorrow.


Bobbyrib's picture

Go to Google and type "Angela Merkel."

I should be working's picture


Coordinated political bullshit.

milanitaly's picture

Is bundesbank buying italian btp right now?

mark7's picture

In the end ECB will print money and as a deal sweetener, sell UK to some American hedge fund. There are some troublesome natives in the island but should not be a big problem in the long run.

Snidley Whipsnae's picture

This says it all... "In the end ECB will print money"... their are no mkts that are free.

Currency wars typically last 10 years or longer. This one started in ~ 2010 and will go back and forth for many more years.

Anyone expecting a quick and dramatic end to the Euro Currency will be disappointed.

Anyone that believes that gold will not be reintroduced as a partial backing for all fiat currencies will be disappointed.

Any bots that drive up equities because some technocrat tells another whopper will be rewarded for their preannouncement puts. How much did Mario make on the 26th after his comments?

Equity mkts are notorious for running hither and yon with their hair on fire... This is human nature via bots on display and human nature has not changed.

IOW... Why get caught up in the day to day bs of a worldwide currency war that will rage for a decade or more?

Better to establish a safe position and hold it... Unless, like Mario, you are capable of moving mkts with bs 'announcements'... and trading to your own advantage because you are creating mkt moves.