Market Stalls As LCH Announces Margin Hikes On Italian Debt

Tyler Durden's picture

According the note below from the LCH website, deposit charges on Italian bonds will almost double effective close today (Wednesday November 9th). The details can be found here.



LCH Raises Deposit Charge on 10-Yr Bonds to 11.65% From 6.65%

Initial reaction is -5pts in ES and 35pips in EURUSD (breaking back below 1.38).


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slewie the pi-rat's picture

margin hikes are soooo risk-0ff, BiCheZ!

phyuckyiu's picture


Mr Lennon Hendrix's picture

Hike gold margins, c'mon, bitchez!  It won't be like we haven't seen that before.

Physical, biatchez!

French Frog's picture

How about this scenario: the ECB buys enough Italian Bonds today so that the basket of yields' level/spread used to determine whether a margin hikes HAS to take place is not enacted: that should be enough to kick the can down the road for another day or maybe until at least the weekend.

Could they?

Mr Lennon Hendrix's picture

Fiat Ponzi is sooo risk off,,,, bitcheZ!

So is gold, you know that though.

YesWeKahn's picture

Bernanke has the solution: print.

qussl3's picture

Crude above 95 and Brent 115 says not anytime soon.

The Shootist's picture

Seemingly. Stagflation anyone?

Mr Lennon Hendrix's picture

Yeah, sort of, but stagflation istoo 70's.  This is worse.  We need new terms.  As of now, this is more than one word.  This is the Greatest Depression meets inflation meets deflation meets woops!  Sorry!  You bought into the Fiat Ponzi!

Non Passaran's picture

Hyperstagflation, some call it.

css1971's picture

It's just a simple rebalancing of the economy.


From paper delusions to physical reality.


Seer's picture

Fiat Ponzi is a poster child for the paradigm of perpetual growth on a finite planet.

Yes, it's going to be bad.  As I've been stating, economies of scale in reverse is going to be a harsh experience.  Here's how this kind of thing looks:

How do they keep from closing down?  Raise prices?  That'll further smack down demand!  There's no way out of this.

Mr Lennon Hendrix's picture

Yeah good thing Bernanke is raising rates, so to quell speculation.  I mean, you know, no QE, right?  He is just keeping rates at 0%, that's all!  He wants a strong dollar.  He wrote about it.  "A strong dollar will raise exports, bla bla bla!"  Bernanke, an econonomic genious, ivy league scholar, smartest man of this world!

NewThor's picture


can raise unicorns 

in 15 minutes.


Dick Darlington's picture


In panic, kill democracy (TM)

Mr Lennon Hendrix's picture

Democracy didn't work with abundant oil.  Maybe it will work when people have to walk to work.  Let's spin the wheel and find out.

NewThor's picture

You can spin a wheel without oil.

so there is that


JesusUp's picture

yeah, like hydrogen may work , even


Dick Darlington's picture

And some more from the delusional dictator:

 Nov. 9 (Bloomberg) -- German Chancellor Angela Merkel said
the referendum plans announced in Greece last week during the
Group of 20 summmit in Cannes showed that domestic policies in
any one country impact the entire euro region.
     “What we got in Cannes was the feeling that there is no
such thing any more as domestic policy making,” Merkel was
cited as saying in an interview with Deutsche Presse-Agentur
published today in English. “Domestic is what’s inside the
currency area. Greece can no longer decide all by itself the
issue of whether it should hold a referendum or not.”
     The decision in Greece, which was subsequently overturned,
“had ramifications for all of us because the dependability of
decisions taken by the 17 was suddenly endangered,” Merkel was
cited as saying. “All the other 16 were just as affected by
this referendum decision.”

Schmuck Raker's picture

"Greece can no longer decide all by itself the
issue of whether it should hold a referendum or not."


"We're All Greeks Now."


LikeClockwork's picture

Someone break it down for me nice and gentle. How should this play out for the coupon/yield within the next couple of days?

slewie the pi-rat's picture


ok.  i'll try

  • IF we ass-u-me that raising margins tends to dampen speculation = risk-0ff
  • THEN money tends to got into Treasurys = yield declines
slewie the pi-rat's picture

but in riskier bonds, hy-yield & junk,

then those yields might go up

Blank Reg's picture

And I saw, and behold a white horse: and he that sat upon it is called Schiff:  And a bow of silver; and a crown of gold was given unto him. And he thus spake: By these signs shall I go forth, conquering and to conquer.

~ Book of Revaluations

Gene8696's picture

And I stood upon the sand of the sea, and saw a beast rise up out of the sea, having seven heads and ten horns, and upon his horns ten crowns, and upon his heads the name of blasphemy... the euro.

Blank Reg's picture

spake [speyk]  vb

Archaic or dialect; a past tense of speak. (Geeze, crack a book sometime)

Schmuck Raker's picture

I'm well aware of the definition of 'Spake'.

I gave you a +1 cuz I like the fact you used it.

'Behold' also usually brings a smile to my face.

And, 'Nigh' is da bomb!

lolmao500's picture

So every french bank is about to blow up... NICE.

JLee2027's picture

Yeah yeah. They always get right to the brink and then it reverses. Watch the Italian 10 year do the same thing. How amazing.

HD's picture

Sadly, I have become just as jaded. Reality doesn't seem to matter. Fundamentals certainly don't matter. Lies, spin and hopium - now they matter.

Peter K's picture

We need a positive EUR/USD rumor, and fast:)

slaughterer's picture

The will come up with another positive EUR/USD rumor by 3 pm.  They always do, don't they? 

Brooklynnative's picture

Does Tyler never sleep or are there more than one writers using that name?  

UK debt marsh's picture

There are a bunch of smart little tylers behind the curtain

HD's picture

BLASPHEMY! There is only the one and true Tyler. Non-believer will be cast into the hell fires of CNBC - where they will forever tormented by "the Cramer"...a fate worse than death to be sure.

REPENT now and save yourself! The truth shall set you free.

NewThor's picture

Some chick told me Tyler is Putin.

Chicks are crazy.

HD's picture

I apologize in advance...

  I guess she was..."Putin" you on!

    And again, I apologize.

Arius's picture

ZH has offices in Switzerland and london, therefore, there is someone else being paid to update the site .... just a guess there is only one tyler per se, but several employees ...

Cassandra Syndrome's picture

Italian Bond Yield Inverts. The yields are exploding as we speak.

Flounder's picture

Just saw BTP at 6.903%.  Intervention coming?

Cassandra Syndrome's picture

6.97%. About to hit 7%. Complete panic sell off this morning.

chump666's picture

wow Italian 10yr just went into orbit.  german bund/italian bond spread = default +CDS wipeout. 

hondamikesd's picture

F5'ing Bloomberg ITA 10 yr watching yield tick up at every click... the wheels are falling right the fuck off.