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In The Meantime, Belgian CDS Surge Past 300 bps, On Verge Of Inverting

Submitted by Tyler Durden on 10/14/2011 08:06 -0400

Don't tell the stock and EUR momo squeeze-based melt up, but even as European funding markets continue to be completely snarled up, default risk has taken a big step wider today. As usual, expect the HFTs which now thoroughly control both equity and FX markets, to be the last to get the memo. Most notable: Belgium CDS have just soared to over 300 bps, a 15 bps move wider on the day (and a welcome boost to anyone still holding on the Dexia-Belgium compression trade), and are about to invert.

5Y 10Y 5/10's

ITALY        452/462 +11      439.5/453.5    -16/-1
SPAIN           383/393 +6         368/384      -13/-3
PORTUGAL    140/1180 +25    875/945     -280/-220
IRELAND     740/770 +20        590/660     -160/-100
GREECE         60/62   +0.5        60/64    -0.5/2.5
BELGIUM     314/324 +15    311/325       -6/4
FRANCE       182/186 +7        197.5/207.5     16/21
AUSTRIA      167/175 +5     180.5/190.5     12/17
UK           92.5/96.5 +2.5     107.5/113.      14/18
GERMANY 94/97   +1.5      112.5/118.5     17/21

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Fri, 10/14/2011 - 08:08 | 1772863 trade the day

blue horse shoe loves anacott steel

Fri, 10/14/2011 - 08:08 | 1772865 trade the day

Oh I forgot....BITCHEZ

Fri, 10/14/2011 - 08:10 | 1772867 GeneMarchbanks

'Don't tell the stock and EUR momo squeeze-based melt up, but even as European funding markets continue to be completely snarled up, default risk has taken a big step wider today.'

You can't tell 'em nothin'!

Fri, 10/14/2011 - 08:11 | 1772869 LongSoupLine

I'm certain CNBS will have "Breaking News" on this at any moment.

No wait, GOOG is up, all's well...

Fri, 10/14/2011 - 08:11 | 1772870 FunkyMonkeyBoy

Tin Tin will rescue Belgium.

Fri, 10/14/2011 - 08:17 | 1772881 hondamikesd

Those Greece numbers have got to be a typo, right?

Fri, 10/14/2011 - 08:19 | 1772888 Tyler Durden

Those are in points not spread.

Fri, 10/14/2011 - 08:22 | 1772895 hondamikesd

Thanks TD, was sitting there totally confused for a minute!

Fri, 10/14/2011 - 08:21 | 1772892 mossme89

So, correct me if I'm wrong, but what this article is saying is that this current market melt-up is a precursor to a melt-down?

Fri, 10/14/2011 - 08:23 | 1772898 LongSoupLine

Winner! Choose any stuffed animal from the display.

Fri, 10/14/2011 - 08:27 | 1772904 mynhair

Melt-down is certain sometime in the next 100 yrs.

Fri, 10/14/2011 - 08:39 | 1772934 GeneMarchbanks

With causality acknowledged after the fact.

Fri, 10/14/2011 - 08:27 | 1772906 bank guy in Brussels

Yet you know, life is pretty damn wonderful here in Belgium, even for those on minimum wage or getting social benefits.

You Americans who don't travel, may have little idea of how nice it is here.

Fri, 10/14/2011 - 08:40 | 1772936 kroegman

Proud to be Belgian today (again)

Without a government, my country manages to save a big bank and thus save the EU in one weekend ! We also continue to valiantly accept all guarantees required to increase the fire power of the EFSF, no questions asked, no delays. A bit disappointed though that we were only the second country approving the increase; France beat us by a little margin; but a new opportunity to excel will be presented shortly when more firepower of the EFSF is required.

Our non-government also in the same swing guaranteed all creditors of Dexia Bank Belgium that their debts were safe and to a large chunck as well also the creditors from "rest bank" (as bad bank is so nineties) and in that same swing tax payers will not loose one penny, on the contrary we will even gain from the operation (as we did with all prior operations in 2008). Our non-government is silently hoping that KBC and BNPP will also come into trouble as this would give us a new opportunity to win for life. And in that same swing, certain special shareholders of Dexia will be extra supported by the government as they are either linked to the communities (gemeentelijke holding / holding communal) or the unions (Arco). Only the other shareholders will suffer a bit, but they are speculators and deserve no better than to be crushed. However, in our non-government's limitless goodness, it agreed (vaguely of course) that all upside on a later sale of DBB will be shared with the Dexia shareholders. Our non-government would not want to be associated with equity gains, it only takes lossess.

Our caretaker Prime Minister is so good that he has been picked by the OECD to become their vice-president and repeat the same policies in all other "developed" countries.

If you want to become a Belgian too and share in the goodies, you're most welcome. Passports are available at first request and you will receive preferred treatment (and free money and housing for life) if you have no job, no intention to work, no intention to learn a local language and can bring along your family to the second degree in all directions.

Fri, 10/14/2011 - 08:52 | 1772963 machineh