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Risk-Off Initial Reaction To PSI Deal

Submitted by Tyler Durden on 03/09/2012 02:26 -0400

Broadly speaking markets are derisking post the PSI deal announcements. Treasuries are 1-2bps lower in yields, EURUSD is down 35pips or so under 1.3230 (and JPY is rallying as carry is unwound), ES has dropped -5pts, Gold and Silver are sliding modestly, and WTI is off its peak but remains over $107.

EURUSD is under 1.3230...

Aggregating risk assets into a broad proxy, we see CONTEXT leading US equity futures lower at the moment...

Charts: Bloomberg and Capital Context

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Fri, 03/09/2012 - 02:28 | 2238725 non_anon

man, this PSI shit has my head swimming!

Fri, 03/09/2012 - 02:28 | 2238727 Michael

How much Greek debt is being discharged in this deal? In billions please.

Fri, 03/09/2012 - 02:44 | 2238780 HD

100% Yes, all of it. It is impossible for Greece to do anything other than default - and everyone involved knows that.

This "deal" is nothing more than a shell game to keep CDS from triggering thus "saving" the world as we know it.

Fri, 03/09/2012 - 03:10 | 2238828 barliman

In euros, 172 billion

Fri, 03/09/2012 - 02:32 | 2238742 poor fella

Still bullish for riot gear...

Fri, 03/09/2012 - 02:35 | 2238755 roadlust

gonna move big. question is only: which way?

Fri, 03/09/2012 - 02:36 | 2238756 Yen Cross

Those charts were 2 deviations in lock step Tyler!

Fri, 03/09/2012 - 02:43 | 2238776 upb

its ok..... wake up tomorrow morning and it will be like Greece never existed. just btfd!!!!!!!!!! http://tinyurl.com/6pdb52k

Fri, 03/09/2012 - 02:46 | 2238785 hangemhigh77

What time do the riots start in Greece? Maybe Holder could actually do something to HELPpeople and ship guns to the Greek people, Fast and Greekious.

Fri, 03/09/2012 - 02:46 | 2238788 cnhedge

sell on the fact.

http://www.jinrongbaike.com/

http://www.cnhedge.com/

Fri, 03/09/2012 - 07:35 | 2239042 disabledvet

i agree with this. "they have rules. we have rules." should be interesting actually...

Fri, 03/09/2012 - 02:47 | 2238791 hangemhigh77

Greeks love the smell of burning petrol in the morning

Fri, 03/09/2012 - 02:54 | 2238806 Yen Cross

I'll get more short! The knee jerk reaction was expected. When the ramifications of the actions sink in, Eg; Spain portugal and Italy covering the trade looks GREAT!

LEST we NOT FORGET how The ECB FUCKED PRIVATE BOND HOLDERS! That deserves a premium! NO?

Fri, 03/09/2012 - 03:09 | 2238827 barliman

Weeeeeeee

German MS representative on CNBC Europe "Market is not convinced yet that the glass is half full."

"When you have extreme high debt to GDP ratios, you have continued high risk."

I think his name is Herr Obvious

barliman

Fri, 03/09/2012 - 03:30 | 2238862 Number 156

Definitely risk off.

Fri, 03/09/2012 - 03:36 | 2238867 chindit13

The reaction seems to be muted. Market players know they just got screwed, but what they do not yet know is whether they are pregnant or caught an STD or something.

Fri, 03/09/2012 - 04:20 | 2238898 Dead Canary

Things are strangely quiet. Hummm. I don't like it.

Fri, 03/09/2012 - 07:44 | 2239055 Monedas

There was always one inevitable constant in the Greek crisis....a given....private bondholders would get hosed !

Fri, 03/09/2012 - 09:05 | 2239172 tabasco71

why are gold and silver sliding - should they not be rallying?

Mon, 03/12/2012 - 03:19 | 2246544 marinarobert

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Risk-Off Initial Reaction To PSI Deal

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