European Liquidity Blow Out As Euribor-OIS, USD Libor, And ECB Deposit Usage All Soar To Yearly Highs

Tyler Durden's picture

There are only three charts that matter currently for a snapshot of the liquidity pulse in Europe. And unfortunately, it continues to be in V-Fib, according to the Euribor-OIS (spread between central bank and interbank borrowing or explicit riskiness in non-printing press backstopped market), the 3M USD LIBOR (or the funding need for USDs), and the ECB Deposit Facility Usage (lack of safe alternatives on where to plant bank cash). Well, the first is at 84.9bps, +2.9, the widest since March 19, 2009, the second is at 0.343, up from 0.338%, and the widest since August 18, 2010, and deposit facility usage is at €182 billion, the widest since July 2010.


3M USD Libor...keep pressing those Credit Agricole CDS

And ECB Deposit Usage:

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LawsofPhysics's picture

This isn't the liquidity problem you were looking for, move alone... move alone...

spiral_eyes's picture

Massive spike in the reverse repo agreements with the Fed, too.

Euribor spike + reverse repo spike = massive fear among baning establishment.

What do they know that the hopium-addicted market doesn't? 

DeadFred's picture

And yet, if the volume is low, those cute, lovable algos will rally us off the morning lows. Insane.

LawsofPhysics's picture

You know it will be, especially with TPTB doing everything that they can to interupt public trading today.

unky's picture

Yes, really strange how there is such a liquidity problem with billions of central bank money flowing arround in the system

Crisismode's picture

Not really all that strange.


The CBs print and give it to the banks.

The banks sit on it, and it goes absolutely nowhere.

The CBs can keep shoveling the ones and zeros down the network pipe, and the banks digital vaults open for the stream, andthen  lock up tight thereafter.

This will continue until it cannot.



Mike2756's picture

They didn't print enough, they have to print more money!

Flakmeister's picture

Shit is about to get very real....

Greater Fool's picture

Oh, I think we still have a way to go. Tune up the sovereign credit crisis to its highest pitch, throw one big bank failure into the mix, and then stand back. Until then it will at least seem plausible that all might be well.

Flakmeister's picture

I gotta fire up charts of the TED and other spreads leading up to Lehman....

You cannot predict the exact moment of implosion, but I give it 2 more weeks, tops, before something gives. Think of Greece being the equivalent of Fannie and Freddie going into conservatorship

prains's picture

I think Greece has enough money until October 17
And enough ouzo until the 18th

CheapKUNGFU's picture

All your blowouts are belong to us... make your time!


ZeroPower's picture

Surprised no official GRE default over weekend. For serious, how much more can that country bleed. Will we see their CDS be the first to reach 10k?

DeadFred's picture

Anyone know what their payment schedule is? No one loses their house to the bank before the mortgage payment is due so Greece won't default until they have a payment they can't make. When are the next glops of their life blood due?

Moneyswirth's picture

There is no European bank liquidity crisis.  The ECB has told us so.  

SMG's picture

Hey, does it smell like smoke in here?

Gandalf6900's picture

I feel some liquidity in my underpants

taraxias's picture

But...but.....but.....I thought that asshole said "Boring world we live in"



tmosley's picture

It's funny, the other day he implicitly accepted the fact that Greece would default as part of his "boring world" crap.

falak pema's picture

I think his sense of boredom has driven him to amazed silence...

Racer's picture

Don't worry the PPT are hard at work at this very minute pumping futures

Tense INDIAN's picture

OH LORD !!! Some good that I can short from a Higher level as soon as possible

MFL8240's picture

This expalins why Gold is down in the Chicago sewer.

Moneyswirth's picture

The talking heads on CNBC are shocked...SHOCKED...that markets can actually go down.

Sequitur's picture

"Um, did a cow shit in here?" -- ECB bank vault + worthless euro confetti.

Rockfish's picture

Jamie Dimond is crying means we are getting closer to the truth.

spiral_eyes's picture

dimons are forever, bitchez.

Careless Whisper's picture

The Morning Careless Whisper Report



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SheepDog-One's picture

DANG! So Amy Winehouse had too much blood in her alcohol/heroin system?

Flakmeister's picture

Gas-guzzling junk.... yeah, I'll go with that.

SheepDog-One's picture

Hell I could have told China that before they bought Hummer, theyre junk behemoths not much good for anything at all and anyone I know who owns one is a complete jerk.

Abitdodgie's picture

Have you noticed that all H3 drivers are small blonds ?

M.B. Drapier's picture

Pilot Scared, Tells NORAD To Scramble The F-16s; Hetero Couple Joins Mile High Club In Very Long Romp

Still not as good as the biohazard alert which was called when BA (I think) staff discovered a mysterious white powder on a toilet lid in a plane flying (iirc) NY-London during the anthrax scare.

Dad: Too Much Detox Killed Amy Winehouse

Seems similar to poor Keith Moon's death.

mikmid's picture

drizzle drazzle, drizzle drone time for europe to explode.

Max Cynical's picture

Is anyone else having problems with ZH loading super slow?

SheepDog-One's picture

Bernank needs to be strung up with piano wire for sending $1 trillion bailout to Europe, down a black hole. Its bad enough he did it here, but sending it to Europe is outright treason.

OK Bernank now you have 8 days until D-Day, what are you gonna do fuknut? Just sit there and pump futures? Thats all ya got?

ISEEIT's picture

Not to worry. Everything is under control. The only problem I can see is the assuredly temporary USD strengthening crisis. I have full faith however that the authorities are all over that one.

Sudden Debt's picture




Flakmeister's picture

So 3 month LIBOR is higher that the 2 year note....

Shit like this always ends well...