This page has been archived and commenting is disabled.
Italian 5 Year Bond Rises To Record 7.847% In Aftermath Of Catastrophic 6 Month Auction
Italy held an auction for EUR8 billion 6 month Bills today. Unlike Wednesday's German 10 Year Bund issuance, the auction was not a failure (at least not yet), and for good reason - the yield paid for the Bill was 6.504%, the highest since August 1997, and is nearly double the October 26 auction when it priced at a now nostalgic 3.535%. But... the maximum target of EUR 8 billion was met without anybody's central bank have to retain anything. The bid-to-cover was 1.47 compared to a bid-to-cover of 1.57 one month ago and average yield of the last six 6-month auctions of 2.443% and average bid-to-cover 1.636. All sarcasm aside, this is an unprecedented collapse and a total catastrophe as Italian Bills now yield more than Greek ones - the market has basically said Rome needs a debt haircut and pari passu treatment with Athens. In the aftermath of the auction everything has come unglued: 2s10s is inverted at unseen levels, the 5 Year has hit 7.847% , and Euro liquidity is gone...it's all gone.. as the 3 month basis swap hits -157.5 bps below Euribor, the lowest since October 2008.
»
- 7718 reads
- Printer-friendly version
- Send to friend
- advertisements -
It's fine it's fine there are always treasuries.
When are they going to throw in the bullshit flag on this one.
These bond yields are forescasting gloom
As the big China bubble goes BOOM!
Just watch the dog wag
A Mid East false flag
Our greed has engendered our doom
lol, nice!
The Limerick King
The best post on ZeroHedge.
http://asiancorrespondent.com/70425/climategate-ii-mainstream-media-fails-again/
I wonder if Max Keiser has read this article yet
Complete fookin' chaos ... that's what.
Who bought? UniCredit & Intesa?
Yup. I saw an internal memo. It read:
1) Buy Italian bonds
2) ????????
3) Profit
Nice
http://www.youtube.com/watch?v=RAKsMnAM8vk
http://www.youtube.com/watch?v=IPEYycCRKXo&feature=related
Ask Andrew Bosomworth, portfolio manager at Pimco.
He blew the horn to profit from weakness in italian bonds in July.
("Italy is not Greece ... blah ... ECB will step in to avoid domino effect ... blah").
Those numbers sure do tell a story. Finally!
The way the markets are ambling up at the moment makes me think of a lamb ambling into a slaughterhouse
And gold and silver are down...lol..I am so confused...so confused...
I'm so happy, we've got Euros, cause' Gold is UP 0.7% today in Euros. Yeeepeee. /sarc
there should be nothing to be confused about. When their is a liquitiy cirisis which we are currently in the US dollar will be well bid. When their is a flight to safety gold/silver should do well. I am happy to add to my gold and silver holdings now is just not the time. I either wait for an updtrend based on techincals or try to catch a falling knife where my potential for losses are very limited.
Surely that is because the money that would have bought gold can now buy bonds that will give them a half-decent (although perhaps still not inflation-beating) yield, instead of nothing ?
I read about doom & gloom for now... but where's the boom?
On its way soon, not sonic, but soon.
Ruh roh!
....and boom goes the dynamite.
Rule 1: Never take investment advice from an underpants gnome.
Seriously, though, isn't there a level of daily credit availability below which real businesses start to seize up? I'm thinking the next round of damage to the system (sic) is largely silent, until people start gnashing their teeth, and wailing in public about not getting international shipments of stuff.
why the fk isnt the Euro falling off a cliff?? how can people not realize how bad this is? yes yes i know all fiat currencies worthless in the end but my shorting the euro allows me to put my profit into gold. so again i ask why isnt the euro collaspsing
I'd love to know that as well, I didn't try to short it because there is something else holding it up and I'm not sure what needs to happen for it to collapse. Maybe its because there are too many people shorting it already and that keeps the price floating on short covering.
The two year was over 8% a few minutes ago as well...
http://www.youtube.com/watch?v=d0wu1aj3X4M
:)
So the European countries are fine. They aren't being cut off from the market, they just need to pay higher rates. I'm sure they can handle paying 7% interest rates on their debt levels...
Euro collapsing.
Might want to keep an eye down South as well. Both Mexico and Brazil have been devalued over 20%
in the last couple of months. Those high yield emerging market bonds are really great, no currency risk at all.
What's happened to Greece and it's 200% costs..? All gone quiet..
LOL- wait until Italy has to pay 20+% next month to sell the same paper......
Germany is HAPPY, they are going to leave the euro without saying nothing against other countries, just waiting time passing...Bravo germans!! They only need China apparently for their business, I hope China is going to buy all BMW & MErcedes for ever...I hope this truth for germans, if not, they are in trouble, real trouble...
If you are speaking of car sales, Germany is depending on Europe and North America. But China is also a very important market for them.
You will not and cannot survive depending on only one market. The German interior market is basically dead (just look at the average German merc client - he is well above 55 years old - that's a red flag and bad for your image (not saying 55 year old people should not drive Mercs or that they don't count as customer; they are important (especially with the age pyramid in mind) - and that worries those in the middle management.
In bad times Germany could fall back on it's strong interior market - that's gone. That was the price for the Euro and the export driven economy. The management decided it was more important to sell elsewhere, meaning that you had to compete. Thus they reduced the average wages of workers. There is another thing many foreigners usually don't know. They think of Germany as of 1995 Germany or 1999 Germany - back then, if you had a job, you had a job almost for life. That has changed with the new labour rules - introduced ironically by the Socialists (Labour party of Germany - SPD) and now it is 'hire and fire', something which German employers always wanted to copy from the USA.
Another thing - unemployment data in Germany is heavily manipulated. And there is a reason - first, an interior reason (1 politicians will use that for their campaigns; 2 employers can put more pressure on workers, knowing that the data is distorted); second: Germany wanted to polish it's own image - to look attractive for foreign investors and also important for foreign "specialized" workers (which they urgently need);
You can say - Print! And many will so. It's not only a question of popularity here - it is unpopular due to our own history and our lessons with monetizing debt. BUT: Currently the majority of Germans who do not earn above 4000 Euro per month have lost money since the introduction of the Euro - there were almost no strikes - like in Greece where a strike is basically every day - no, Unions here work on the top level very good (and bad for those that they represent) with higher management of many companies. Some lost a staggering 22 percent of what they earned before the introduction of the Euro. They had already their austerity Greek style - but over 10 years. And now imagine - you put more pressure on those people (speaking of at least 12 million Germans here) - that'll be the end of social peace, class warfare and more pressure on the interior market that is already basically dead. I am not kidding you. That concerns me really.
So German elite is in a catch 22 situation. They would have to raise wages - and that is something they really don't want to do. Which is ridiculous; but that's adding fuel to the problem of the Eurozone. I saw an article where they admitted - "ooopps, it's bad; inflation has eaten your lifestyle, man that's bad luck, but we cannot raise your wages, really, that would increase the problem, please understand. Can't do that. Sorry."
On the other hand the German people see that their companies are doing very well. And they ask - but what about me? Shouldn't I be integrated in that success story? Etc.
Just my point of view as an ordinary German that is doing well.
What "The Market" says is: "OY You! Fatboy!! Yeh YOU, ECB - Buy them fucking bonds or ill fucking stab ya"!!
Does any have link web links to get pricing on these kinds of bonds? Trying to find a ticker on Bloomberg is like trying to auction Spanish 3YRs. Thanks...
http://www.bloomberg.com/apps/quote?ticker=GSPG3YR:IND&n=y
Look at Italian Sovs compared to U.S. Treasuries. A glimpse at our future.
Italian Bond Auctions Reveal Their Deep Debt Problems - Mama Mia!
http://confoundedinterest.wordpress.com
Surreal News- an Italian friend just told me that the Masons have announced that they back Monti. Do you like your conspiracies with or without parmesan?