As A Reminder, Here Is What China REALLY Thinks About Italian Bond Purchases

Tyler Durden's picture

On one hand we have FT "reporting" about Chinese Italian bond purchasing ambitions citing "unidentified Italian officials" one day ahead of a major Italian bond auction (wink wink nudge nudge). On the other hand, we have Reuters, citing a real live Italian Finance Minister (though not for long) Giulio Tremonti, who tells us a slightly different story, which, gasp, cites real live people: "Italian Economy Minister Giulio Tremonti said on Thursday that Asian investors are reluctant to buy Italian bonds because it sees they are not being bought by the European Central Bank."

From Reuters "Italy says Asia asking why why ECB isn't buying bonds":

Italian Economy Minister Giulio Tremonti said on Thursday that Asian investors are reluctant to buy Italian bonds because it sees they are not being bought by the European Central Bank.


Speaking at a news conference, Tremonti also said it would be desirable for the central bank to follow the lead of the Japanese and Swiss central banks in taking expansionary steps to tackly the euro zone's crisis.


"I note that the Bank of Japan today launched quantitative easing and the Swiss cen bank cut rates to zero, we are waiting for decisions if possible, but desirable (from the ECB)," Tremonti said.


When you talk to Asia they say: "We don't understand what Europe is," he continued. "The second point is that they say 'if your central bank doesn't buy your bonds, why should we buy them"?

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Irish66's picture

When China wakes up they will deny but we will be closed

Jasper M's picture

When China wakes up, it will chew off the arm that Europe has fallen asleep on, to escape. 

"Ug! To much rice wine! Now must go boil honorable self!" 

CPL's picture

Actually here is the exact piece of information needed.


Original Source:



Shitty translation:

Earlier, Chinese Ambassador to the EU Embassy Press Counselor Wang Xinning said in an interview that the Chinese government is considering whether to buy euro-zone bonds again, but to buy European bonds are based on commercial considerations. He said China hopes the situation is getting better the euro area, and are willing to assist, but impractical to spend millions to buy European bonds. The EU can not rely solely on China to save Greece.


China will help by waving their hand from the deck of their ship while the euro titanic sinks.

Léonard's picture

Do you really think the Chinese would be stupid enough to help the Euro  if they didn't trust it ?

Come on. Greece's GDP is insignificant for the Eurozone and if the country default, the Euro will be stronger than ever. So stop the nonsense. The seriously ill currency is the dollar not the euro.

TruthInSunshine's picture


And that's how the game (ultimate Ponzi that are not only broken, but criminally rigged ,markets) is played.

hambone's picture

Poor, poor ZH trying to bring logic to a worldwide bullshit party.  Poor, poor truth buried under mounds of feces.

Best defense is a good offense...time to start just making up shit to counter the bullshit being spewed...oh wait, I guess that's what CNBC, Faux News, etc. are for.


Ghordius's picture

"We don't understand what Europe is"

There you have it. CNBC, Faux News, some ZeroHeads, most commentators,

all befuddled by the "EuroArchitecture".

Italy, watch out, the Japanese reacted very, very badly to the first Chinese attempts to buy in style some sovereign bonds. Why?

spiral_eyes's picture

China are entitled to hang onto their money and let asset prices depreciate further to get more bang for their buck. But some signs suggest they will act. The more Europe and America deteriorate, the weaker the demand for Chinese goods.  And China’s massive FX holdings’ value is dependent on the system of international trade and the economies of various Western nations retaining functionality.

Of course, China stepping in to buy shoddy debt isn’t going to offer any  solutions to underlying problems. At best it will kick the can do the road awhile, as Europe muddles around and continues to fail to come to any kind of meaningful or coherent agreement on its future.

What a fucking mess. 

Migrated Bird's picture

Amen my brother!!.. China is just a richer version of warren buffett.. It is in their best interests to see that europe and eurozone does not crash.

jbc77's picture

Seems to be ramping the market though, guess in the eyes of the asshole central bankers, today is a mild success. How this saves Europe from insolvency is beyond me. Truth be told, not too many humans left in the market to really care anymore. Half of us gave up and the other half is now buying physical gold and silver everymonth. Making moves to insulate one' self from central bank disasters is the new en vogue thing to do. Carry as little debt as possible, store your savings in real metals and stay away from the stock market.

scatterbrains's picture

Mr market says there is a better chance of earning .10 cents on my dollar with this bullishshit news.

keeping it real though, folks should fear losing .90 cents on the dollar... I guess any chance at making that dime is blinding.

JohnG's picture

S&P green, SPY flipping around like a dying bug......whhat a fucking farce, blatant, damn.

JohnG's picture

DOW green, what a shitshow.

JohnG's picture

oops, dow

JohnG's picture

green again, everything,!!

JohnG's picture

yep, gonna close on highs, lol, hhahah, fuck.

caerus's picture

options expiry week...should be fun

JohnG's picture

Yeah.......always crazy, all the time.  Market needs a shrink.

JohnG's picture

Kim did a dance,

Peels dress off,

get green at 4!

JohnG's picture
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Fips_OnTheSpot's picture

but ECB *is* buying italian bonds

DaBernank's picture

The ECB is not buying the €400 billion in Italian bonds that the chinese think they should in order to "commit fully" to this European thing they do not understand.

Print, baby, print.

John McCloy's picture

This is our stock market..timely rumors...promises of more ponzi and bailouts and they wonder they the economic structures of all our countries are poisoned. People should be running full steam away from these markets instead of trying to snag a few dollars chasing the next rumor that causes a 100 point swing. 

Lord Welligton's picture

"People should be running full steam away from these markets instead of trying to snag a few dollars chasing the next rumor that causes a 100 point swing."

I think the people have.

The machines and the psychos are running the show.

I know I'm preaching to the converted but stock markets no longer exist as a mechanism for the efficient allocation of capital through price discovery.

Sorry had to get that off my chest.

Everybodys All American's picture

Wall St. is a criminal organization ... capesh.  Don't put it past Bernanke and Co. to be placing these rumors out there as well.

TruthInSunshine's picture

***Updated Correction: Financial Times***

The Financial Times has reported that there were unidentified Italian officials who had claimed that "those-a Chinese, they-a wanna a buya our bonds and stocks and every-a-ting-a." We wish to emphasize that this report was filed based on anonymous tips placed by untraceable cellular phones from men with very thick Italian accents claiming that our reporters should "just-a trust-a us, capeche?"


orangedrinkandchips's picture

Funny, but you forgot "IM GOING TO MAKE YOU A DEAL YOU CANT REFUSE".....



Dr. Eldon Tyrell's picture

Why you looka so'sa notso bad...itsa nice place...AHH SHADDAP YOU FACE!




Stochdoc's picture

Nothing to see here.  Move along....

RobotTrader's picture

The fact that everyone is denying buying European soveriegn debt means that somebody big is about to buy.

Heh, 80% yields on Greek notes is too irresistable to China, Japan, Taiwan, etc. when they are getting zero interest on short term Uncle Gorilla notes.

BorisTheBlade's picture

Heh, 80% yields on Greek notes is too irresistable to China, Japan, Taiwan, etc. when they are getting zero interest on short term Uncle Gorilla notes.

You have a choice to either buy their bonds and prolong insolvency or wait for some time and buy the whole country when it defaults, which one is better?

Lord Welligton's picture

That is the first sensible thing I think you have said.

Allow me elaborate.

They make a long term side deal with the Greeks.

A port.

Or a short term deal.

NATO secrets.

Buy at a discount of 50%.

Even if the haircut is 25% they're still going to do a lot better than Benny Bucks.

Freewheelin Franklin's picture

They make a long term side deal with the Greeks.


Why not go all in? A military base; private airfield; the first born of...

Maybe if they try hard enough, they can get the Greeks to hand over Carla Bruni on her next visit there.


scatterbrains's picture

watching them buying utilities..  like drifting towards the edge of niagra falls,  jumping out of an inner tube into a canoe for safety.

Flakmeister's picture

Tyler, you are always confusing people with details... you really should learn to stick to the script

HD's picture

Damn. The one day I forgot to wear my hip waders...

Belarus's picture

I think this is algo's gone wild. It started first thing this morning. Market wanted to freefall but as it was the market suddenly got pinned on at -1.07% and seriously didn't budge for what like seemed forever...then ramped higher when it finally did.

This was a computer day all the fucking way. 

Ryman1075's picture

I was watching the same thing...S&P kept bouncing off 1141 and dow kept bounding off of 10867.  Every time they dropped below, one click later and they were right back at the same spot...

Today shows how rigged the casino is and how diconnected from reality the markets are.

Smithovsky's picture

Why are PMs being sold off?  

Fips_OnTheSpot's picture

My thought - the "concerned" are going from ETF to physical. But you wont notice that on the paper-based (~99%) chart.

At least until ZH will publish some more about real-bullion-tradings.

tmosley's picture

Because I willed it so, so that I can buy more.

Wait until you see the next round of volatility, with the downward bias.  Paper may trade sub $1200, and sub $20, but physical will be hard to find.  REALLY hard.  That's when it hits the fan.

Fips_OnTheSpot's picture

Yep - try to buy physical. Difficult.

Smithovsky's picture

Physical as in coins or BullionVault or what?  I agree that coins are hard to get and have been hard to get for a while now, but that's not really a good proxy for physical, that's chump change.  The BullionVault version of physical is in line with the COMEX future.  Sprott PHYS premium is only 4%.  But most importantly, you can take delivery of physical when your COMEX future expires, which means that COMEX price is THE physical price (until, of course, the moment EVERYONE tries to redeem it - then not so much).  So, where do you see that paper and physical are diverging?  

Solid Gold Bubble's picture

They aren't. It's just Blythe selling imaginary pieces of paper that correspond to silver she doesn't have and doesn't exist. The spot price has zero connection to physical supply/demand.

Piranhanoia's picture

because scared people sell paper metal to suppress the price.

RobotTrader's picture



After this run off the lows, the Fed is going to hire some Madison Ave. public-relations firms to start crafting some "statements" about how "certain investors" are interested in buying Europe right now.

And, of course, Bloomberg will quip "According to sources familiar with the matter"...


What a game.

Flakmeister's picture

Hey Robo.... what happened to oil today?

I wonder if the report that OPEC is snarfing every available rig to drill for oil that no one wants has something to do with it?

Dog Daze's picture

today makes no sense...DOW down, PM's down, EURO down

then end of day, DOW up but everything else still sucking shit...WTF?