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Italian Bonds Surge To Early November Wides

Tyler Durden's picture




 

10Y Italian bonds (BTPs) ended the day at their second-widest closing spread to Bunds ever (at 533bps). Only November 9th saw a wider closing print and of course we saw margin hikes at LCH CC&G. 10Y yields are at 7.16%, their highest since just after Thanksgiving but we do note that 2Y yields have stabilized at around 5.00% yields (having peaked near 8% during thin Thanksgiving trading). It seems apparent that perhaps traders front-running LTRO's impact have compressed the 2s10s term structure but much clearer to us is Mr. Market's obvious desire for more money-printing now as BTPs are pushed to unsustainable levels once again - and the banking-to-sovereign vicious circle transmission of insolvency cranks up.

BTPs underperformed today as most European sovereigns were leaking wider into the close...

 

leaving BTPs almost as bad as they have ever been in 10Y spreads (upper pane) and yields (middle pane).

All of this in the context of a consistently increasing SMP by the ECB in the last three weeks...

Charts: Bloomberg

 

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Mon, 01/09/2012 - 13:02 | 2046847 TheLooza
TheLooza's picture

 Whitney T. is making fucking money, the cunt.

Mon, 01/09/2012 - 13:03 | 2046851 GeneMarchbanks
GeneMarchbanks's picture

That seems to follow from the previous piece...

Mon, 01/09/2012 - 14:12 | 2047110 greased up deaf guy
greased up deaf guy's picture

let's just count our blessings everything's a-ok on this side of the pond. lol

Mon, 01/09/2012 - 13:07 | 2046861 mayhem_korner
mayhem_korner's picture

 

 

scendere vertiginosamente

 

Mon, 01/09/2012 - 13:11 | 2046862 SheepDog-One
SheepDog-One's picture

Boo hoo we need more money printing! Give us our free money heroin or us stocks are about to throw a tantrum up in here! Boo hoo!

That should fix everything, well as long as everyone is happy with the new $120 floor for oil and $2,000 floor for gold. Yea go for it more Maniacal Monetizers! Hell speed up the total implosion, see if I care.

Mon, 01/09/2012 - 13:13 | 2046883 EscapeKey
EscapeKey's picture

It will dilute the peasants' overall ownership stake in the economy, so yeah, from the perspective of the elite, it will fix all ills.

Mon, 01/09/2012 - 13:19 | 2046897 kito
kito's picture

sheepie, when is this implosion coming? ive already rotated through a years worth of canned and dried food..............

Mon, 01/09/2012 - 14:41 | 2047240 Instant Wealth
Instant Wealth's picture

... a years worth of canned and dried food ?!

kito, do you care about climate change and global warming, at all ?

I mean, hmm ... all those beans, all the methane blewn into the atmosphere ... horrible.

Mon, 01/09/2012 - 16:08 | 2047527 kito
kito's picture

Dried Quinoa, lentils, some beans, lots of beef-buffalo jerky, canned chicken, salmon, tuna.....and I piped all my methane into my homes heating system......

Sat, 03/24/2012 - 13:30 | 2286763 l.hauri
l.hauri's picture

this is a strange situation. I am sure that we will see updates for this story! gay sex chat

Tue, 01/10/2012 - 01:48 | 2049232 BlackholeDivestment
BlackholeDivestment's picture

Kito, implosion? ...hmmm, 2012.http://www.youtube.com/watch?v=uoaXWMlG5ZM  The market weekness is in place for the Iran reaction. That reaction can take place before action goes hot. Of course it seems that losing whole cities at a time, do to hurricanes tornados quakes tsunamis floods and fires, does not provide the bottom dropping affect, but, a WMD event is what the ''forcasters'' have to offer. The historic cycle is a revelation of the age old designed mark and seal of corruption, which leads to market and military capture. In that order. This time it's a global market system objective to singularity, usuing another willing regional scapegoat and civilian mass casualties in the West to seal a post false peace among all nations and a new world single market order with the new technical ability to pull it off and maintain the new world order of the age ''forecasters'' goal and version of peace in agreement with their moves like: http://www.youtube.com/watch?v=p7bHkH779qg

 

Mon, 01/09/2012 - 13:09 | 2046867 BlueStreet
BlueStreet's picture

VIX up 4.5%, market is flat, whatever.  

Mon, 01/09/2012 - 13:13 | 2046881 Yancey Ward
Yancey Ward's picture

but we do note that 2Y yields have stabilized at around 5.00% yields (having peaked near 8% during thin Thanksgiving trading).

That is a relief!  Then 3-Card Monti can roll all the old maturing debt, and any new issuance, into sub 2Y.  Voila!  Problem solved!

Mon, 01/09/2012 - 13:17 | 2046893 Dick Darlington
Dick Darlington's picture

We need more ponzi bonds issued by banks for themselves, guaranteed by the state and dumped to ECB as "collateral". Then we can pretend for a few more days that there's no solvency issues. And then some ECB monetization on those rainy days when both banks and sovereigns melt down. Add few Mercozy emergency meetings in the name of democracy and european unity between the endless summits to save the unsaveable and then let's do this all over again and call it stabeeletee!

Mon, 01/09/2012 - 13:28 | 2046937 SheepDog-One
SheepDog-One's picture

Around 1,600 points from all-time record DOW bubble top highs....and Mr Market is jonesing for more free money? LOL!

Mon, 01/09/2012 - 13:33 | 2046956 Dick Darlington
Dick Darlington's picture

And the broken minds "predict" stocks to "rally" to highest levels ever in 2012.Are they all Birinyi now? Lol!

http://www.bloomberg.com/news/2012-01-09/how-does-4-gas-at-pump-play-wit...

Mon, 01/09/2012 - 13:33 | 2046957 AC_Doctor
AC_Doctor's picture

Print money to pay the bills-works everytime like a charm, but the ramifications to the peoples value in that money is another issue.  I guess the serfs will just have to work a little longer and eat a little less...

Mon, 01/09/2012 - 14:51 | 2047279 homer8043
homer8043's picture

Where is everybody today? Still travelling from NFL games, I guess the Meadowlands is pretty far away.

Seriously, volume is incredibly light. I can't figure a good acute reason. Central bank meetings on Thursday seems too far in the distance for this light of volume. Just odd and bizarre.

Mon, 01/09/2012 - 15:05 | 2047321 orkneylad
orkneylad's picture
Investors Pay to Lend Germany Money

http://www.spiegel.de/international/europe/0,1518,808080,00.html

 

While many euro-zone nations are struggling to obtain credit, investors are practically throwing money at Germany. The country on Monday raised almost 4 billion euros in six-month debt at a negative interest rate. In effect, investors paid Germany to be able to lend it money.

Mon, 01/09/2012 - 15:12 | 2047347 HarryM
HarryM's picture

I'm getting the feeling the Market is turning a deaf ear to Europe.

It is bad news after bad news after all , but nothing ever happens - Like the boy who cried wolf.

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