European Spreadwatch Alert As Italian Bank Borrowings From ECB Rise To New Record

Tyler Durden's picture

It may not be a big rise, but the €1 billion increase in Italian bank borrowings from the ECB, from €270 billion to €271 billion in Apirl as just reported by the Bank of Italy, is still a record, and not one Italy should be proud of. The Spanish bank update is pending and will be out in a few days, although if the recent about face by Rajoy, admitting the Spanish banks are about to be nationalized, which today is no longer sending the markets higher, is an indication, it won't be a vast improvement. Sure enough, the fact that the market's attention is once again drawn to an indicator of the PIIGS financial sector insolvency is not good for sovereign spreads and at last check everyone was wider, core and periphery together, as Spain was+5.3 bps, Italy +3.8 bps, Netherlands +0.3 bps, and France 1.8 bps. Even the futures are shocking not green on more bad news.

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Oh regional Indian's picture

Sovereign Spreads.

CB Enters.

Liquidity Pumps.

CB Pole-axes.

Sovereign Contracts.

Contracts Come.


Spread, Widen,  Enter, pump, repeat.



timbo_em's picture

Draghi: Fire in the hole! One shot 500bn!

battle axe's picture

The Spain borrowing will blow past Italy in 5, 4, 3, 2, 1, NOW!

Confundido's picture

At night, the stars come out. At dawn, the sun comes out. At 3am, the fucking gold algorithm comes out, and brings the price of the ounce to test $1,625/oz, on no news. Obama must win the election.

Dr. Engali's picture

They just love to monkey hammer paper gold over night. I'm sure the Chinese and the Indians are grateful.

ihedgemyhedges's picture

"European Spreadwatch"?????  Sounds like a live webcam feed.......Eastern Europe, one would hope..........

misterc's picture

And Bankia to be nationalized by Spain. And Bund Future at 142. And EURUSD glued/nailed to 1.3000, what a joke.

HomeBrewPrepper's picture

Just collapse already. I want to visit Europe again but hate the exchange rate now. Let's get euro to .70

The Axe's picture

I am long Italian and Spanish ETF's this morning can I sell them to the FED?  Survey says "YES!" 

lizzy36's picture

I thought the super mario's/technocrats has this thing handled. Imagine my suprise.

Don Diego's picture

Spanish banks will not be nationalized, just their toxic assets

battle axe's picture

The old Ireland two step....

Oh regional Indian's picture

Actually it is ye olde Spanish two step. One foot in Spain and one firmly ON South America via Santander.

Step lightly in Europe, stomp hard over there.


gatorengineer's picture

They have non toxic assets?

orangegeek's picture

Paying debt with more debt - and doing it for how many decades?  The fat lady is warming up.

Poor Grogman's picture

Manipulating the value of money has always been one of greatest crimes in any civilization.

And thus by extension when the ruling class assumes the power to manipulate the value of the money. It destroys the entire edifice of the civilization.

The only two options are for the civilization itself to be destroyed, or for the citizens themselves to take away the money power from the elite.

Awareness of the correct nature of the problem is the first step, and the turmoil in .Europe could be a catalyst for that understanding to flourish.

Tough times ahead...

Monedas's picture

Easy Ponzi money:  Sooner or later the politicos and bureaucrats deal themselves in....creating a monetary magnet for the lazy, insecure, corrupt, cynical parasites....the Socialists !    Monedas    1929     Comedy Jihad Socialist Disclaimer

Monedas's picture

Sixteen trillion....and what do you get....another day older and deeper in debt !     Monedas   1929    Comedy Jihad Owe My Hole To Da Company Store

Freewheelin Franklin's picture

I came across this today. It's from last year.


Conference: Preparing for Euro Breakup (video)

Christoph830's picture

OT: Tyler, any thoughts on Netanyahu's consolidation of power with the Likud and Kadima Parties joining forces? Seems to me the path to war with Iran is clearer than ever: oil prices plummet, consolidation of power, Obama re-election, war

youngman's picture

All the talk this morning with the talking heads is that Austerity was VOTED OUT......yeah it was...but now what...who is going to pay for the new government largess?????  Has anyone figured that out????  NOT...for countries with no growth commodities...nothing to are they going to increase their government spending.....unless they print......or default.....

In the Comex yesterday..there was no movement in either the silver or gold markets...nada..nothing from the customer or the dealer....very wierd....but the price is dropping....and the EU is falling apart...but people are running to the US 10 year and the German 10 Years.....wierd number 25

dinastar2's picture

Italy si broke, it only survives by taking more debts to refund the matured ones.55 italians workers and entrepreneurs have commited suicides in the past 6 months.The expenses sheet of the State is always and endlessly growing while the revenue of the State is dwindling due to deflation .Our exports are too expensive because of the stupid exchange rate - which actually is a peg of 1,3 $ for 1 Euro- .The ECB just take care of price stability (obedient to the german monetarist agenda ) and not of growth and employement so it keeps the prime rate at 1% instead f 0,25% in the USA.Italy will soon run for the emergency exit like Greece, like Portugal, like Spain, and France will join too despite all their self-inflated ego and gallic pride about being equal to Germany; this is the ultimate lie to blow off since France high GNP is mainly due to consumption and debt unlike Germany where exports and saving are the normal practice.So expect in six months from now a new Euro crisis when the CDS will rise on the FRIGS and the spread with German bunds will widen.US $ should then be at 1,25 for a Euro

Tao 4 the Show's picture

Good points. The picture in Italy grows more bleak by the day. I travel there so see it first hand. Suicides on the news while Monti expresses less humanity than a corpse. He seems completely out of touch. The bad part is that, between the super nanny state and too much Mama, it is difficult to find a pair of balls anywhere. The suicides tell the story. People seem scared and in denial, and I hear from acquaintances that drug use is getting worse.

Italian money is sucked by the ton into a giant hole of corruption. Monti, of course, also has no cajones and so only tries to squeeze more from the taxpayers and old people. Zero effort to stop political corruption or organized crime. One recent move was to force pensioners to open bank accounts, which of course subjects them to fees, risk, etc. Hard to see how this can end well.

youngman's picture

I think the EU would be a lot better off right now if the EURO was at par with the dollar....

mendigo's picture

News could have been worse = + 10 on the ES.
In retrospect the MSM will refer to it as complacency I imagine.
It mirrors the rest of our economy - price is almost flat but what you're buying is shit.
SSDD - bring it, you ponzi cock-suckers.

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