Meanwhile In European Sovereign Default Risk...

Tyler Durden's picture

While all eyes this morning are on Chinese CDS (with about an 18 month delay: about par for a centrally planned market), which has finally blown out, the shifting of attention has done nothing to fix the situation in Europe, where CDS is once again wider across the board.

                                   5Y                10Y          5/10's                           

  • ITALY             470/480  +21      446/460      -30/-10                           
  • SPAIN            379/389  +14      352/368      -30/-10                           
  • PORTUGAL    1090/1130 +20      825/895     -280/-220                           
  • IRELAND        660/710  -15      475/545     -205/-145                           
  • GREECE           59/63   0         60/64
  • BELGIUM       254/264  +11      249/263       -8/2                              
  • FRANCE         183/188  +9.5     197/203       12/17                             
  • AUSTRIA        164/174  +9     182.5/190.5     15/20                             
  • UK                   91/95   +3     107.5/112.5     15/19                             
  • GERMANY      109/113  +4     128.5/133.5     17/21
  • XO 829/834 +41.5
  • MAIN 198/199.5 +9.25


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Mongo's picture

So, any rumors today?

Oh regional Indian's picture

Don't know about Rumor but here is some good Humor.

Spain says it's financial sector is all fixed now. Really, they spent 10 Billion Euros and now, all is well.

From the article: " says the process of restructuring its financial sector is now complete."

Thank god hmmmmmm?


Spain is in the Cross Hairs, Literally


JimBowie1958's picture

Why is Greece at the 60ish level? I would have thought they'd be around 1000+ like Portugal.

Did they have some kind of miraculous recovery or is it that no one will sell CDS on Greek sovereign bonds?

JLee2027's picture

Greece is 5500 on Bloomberg. Press the 1W - 1 Week graph...the main quote is no longer updated.


JimBowie1958's picture

Thank you very much, Lee.

Seems that Greek CDS rate is falling, so everything must be fixed now; joyous news!

j/k    :)

GeneMarchbanks's picture

No news about this on CNBC. Mustn't be important.

maxmad's picture

Yep, I always turn to CNBS for truthful reporting!

Peter K's picture

The first C is for Comedy :)

maxmad's picture

BTW, CNBC has now banned all naked short selling on their Million dollar portfolio challenge, bitchez!

maxmad's picture

When asked about the naked short selling ban, Steve LIESman, asked "how can you sell something you dont already own?"

maxmad's picture

wold default, bitchez!

props2009's picture

but do u really believe in CDS predicitng anything? Look at Greece and how CDS has no impact

ZeroPower's picture

Moreso of a predictor than bond px, since CDS market is much smaller and thus cant be manipulated (yet) by CBs.

Case in point: ITA was paying, on average, about 4.9% for its debt throughout the last decade. And today its 10yr is still under 6%. Meanwhile in CDS land..

depression's picture

...but but China is the global engine of growth

...nothing to see here, move along ppl

ZeroPower's picture

I want 300bp on China 5yrs, aka the high from 2008

Tic tock's picture

Does anyone still buy bonds?

Esso's picture

What is this bond thingy you speak of?

HoofHearted's picture

The Bernank...and he has plenty of digital money to buy ALL of them. (OK, Central bankers everywhere join in this party, too. I'll loan you $100B if you'll loan me $100B. It's the monetary equivalent of a reacharound.)

Mister Ponzi's picture

The world economy is going into recession, there are a lot of crisis hot spots out there, and hardly anybody is long duration. I wouldn't be surprised to see, over the next months, even lower yields in government bonds that are generally perceived as safe havens (though medium- to long-term they aren't safe at all for sure). There was never an instance were bond yields have bottomed out before a recession has even started. If you have a fixed income portfolio and have to choose a duration positioning: be long duration.

lolmao500's picture

Can someone explain me why the hell Germany CDS are higher than the UK CDS? Insanity I tell ya.

Mister Ponzi's picture

Because the UK is no member of the Eurozone and has only a limited contribution in bailing out Southern Europe (mainly via IMF contributions) while current proposals suggest huge financial burdens for German taxpayers in the near future. Otherwise, your assessment of the relative credit risk of Germany vs. UK would definitely be correct.

HITMAN56's picture

TD, what happened to the nicknames for the Euro CDS crap?

DutchDude's picture

there are some rumors Germany has already been printing DM's in secret and are anticipating a departure from de eurozone... a wel... if Germany goes; so does Holland which would be nice...