This page has been archived and commenting is disabled.
Italy Bund Spread Tightens Modestly On Rumor Berlusconi To Resign "Within Hours"
When all else fails, and with the Italian 10 Year hitting a new all time record of 6.6% and sending the Bund-Italian spread to the nausea-inducing 500 bps, all else has failed, spread wishful rumors of resignations. Sure enough, the Italian 10 year notes have pared dramatic losses amid reports of an imminent Berlusconi resignation. Italian PM Silvio Berlusconi may step down within “hours,” according to an article written by former minister Giuliano Ferrara in the online edition of Il Foglio, news agency Ansa reported. "Some people say it could be minutes,” Ferrara wrote on the website, according to Ansa. This, coupled with yet another round of ECB intervention has managed to bring the spread inside by... a meager 17 bps, keeping the Italy Bund spread still a well over 470 bps.
More from the WSJ:
Italian Prime Minister Silvio Berlusconi is meeting family members in Milan to discuss whether or not he should resign, people familiar with the matter said.
A spokesman for Mr. Berlusconi declined to comment. The people said Mr. Berlusconi will meet his children and Fedele Confalonieri, chairman of Mediaset, Italy's largest television broadcaster, which is controlled by the Berlusconi family.
While resignation is a possibility, the prime minister is seriously considering going to Parliament for a critical budget vote Tuesday, which could confirm he no longer commands a majority, the people said.
Several once-faithful members of Mr. Berlusconi's party have threatened to vote against the government or abstain from voting during Tuesday's budget vote.
So as Berlusconi if supposedly following G-Pap into the sunset, the next target are French bonds, with the OAT-Bund spread surging to fresh records of just over 133 bps. How long before the bond vigilatnes proceed with the European Fall and take down the entire political establishment one by one...hopefully in a peaceful manner?
»
- 4322 reads
- Printer-friendly version
- Send to friend
- advertisements -
Not going to happen. Berlusconi's style would be to challenge with the vote. No way he'd resign BEFORE the confidence vote.
And the family depends to much on the tax cuts they received from Berlu. It's a money thing plus that guy thinks he's God.
He will stay, and his ego will continue to provide no way out for Italy.
Burn Bitchez, the roof is on FIRE now!
I agree sqz, I think he'll come out fighting.
This is eerily similar to the G-Pap resignation rumours. The EU tactic of diplomatic Force Majeure.
Note also Berlusconi's comments about the Euro "impoverishing Italy".
We could see Berlusconi trying to play the democratic and Independent Italy (nationalist) cards to rally support behind him.
How about announcing a referendum Silvio ? We know the Eurocrats don't like that.
CNBC just reported contradictory rumor, Berlusconi not resigning today. BTP yields to blow out once again.This rumor to be refuted in a matter of moments, as usual.
INDU futures rallied 100 on "the great news"... as you know, news that is not yet news is very bullish.
Silver and Gold in cardiac thrombosis or something. Getting volitile out there.
+ 1776.30
I think they just want to rule. Why would they step down?
How long before the bond vigilatnes proceed with the European Fall and take down the entire political establishment one by one...hopefully in a peaceful manner?
Yeah, that waved bye-bye a long time ago...
*RUMORS*
Why are ES moving up..?
its real scary right now