Here Are The 500 Million Real Reasons Why Italian 2-Year Bond Yields Plunged Today

In case you were wondering what really prompted the 65bps collapse in 2Y Italian bond yields today - since we now know that Salvini's bait-and-switch leaves the newly formed government with even more euroskeptical and anti-immigrant officials than Mattarella originally refused?

Then look no further than the  Italian Ministry of Finance...

They decided today was the day to buy EUR 500 million of two-year BTPs...this was not previously announced.

The Ministry of Economy and Finance announces that, today, a government bond purchase operation was carried out through the assignment of mandates to intermediaries identified among the Specialists in Government Bonds, using the Treasury availability account balances .
 
The subject of the purchase transaction were the following titles:

Artificially supporting the market and signaling to the world that 'Italy is fixed'...

Who needs Mario and The ECB?!!

Is there any doubt this whole charade is rigged now?

Comments

silver140 itstippy Thu, 05/31/2018 - 21:51 Permalink

"Without the ECB there would be no funds available. " Yes, and this is why a sovereign country needs its own currency. Literally, Draghi can deprive Italians of money at any time. This is what happened to the Greeks who were limited to, I think, 60 euros a day withdrawals from their bank accounts and ATMs, unless they agreed to be parasitoid hosts and debt slaves.

A parasitoid is an organism that lives in close association with its host and at the host's expense, and which sooner or later kills it.

In reply to by itstippy

Xredsx Stackers Thu, 05/31/2018 - 18:02 Permalink

Debt creation isn't real money creation. They create money from thin air, lend it to the consumers to buy the product. 

If the global debt level has been increasing annually, then the world has been getting poorer and not richer like we have been lead to believe.

The whole thing is a fucking illusion and humanity is freaking enslaved by a system of systems.

Debt created economy is a out buying the cheapest possible. While real money creation economy is about selling at the highest price possible.

In reply to by Stackers

hotrod Thu, 05/31/2018 - 18:11 Permalink

So US treasury yields will never go up substantially because ECB, BOJ, Ireland, Australia etc will always buy them no matter how much the Fed liquidates or the Government needs to sell.  Fed probably would have purchased Italian bonds if necessary.  World is fixed, debt does not matter.

 

THERE ARE NO MORE MARKETS

KimAsa Thu, 05/31/2018 - 18:23 Permalink

The buyers are becoming fewer.  Eventually, there will be one central buyer of everything.  Everything else will be centrally planned.  

 

 

Let it Go Thu, 05/31/2018 - 18:53 Permalink

Best way to cover up a lie is often with another lie! Much like what happened in Greece the situation is not sustainable and will not go away.

With Italy's bonds taking a hit and the country facing political turmoil it is clear this did not occur overnight. All in all, it might be fair to say Italy is a European debt bomb waiting to explode.

Italy has been held together only because of the direct intervention of the ECB which made over 102 billion euros of Italian bond purchases in 2011-2012 alone. The article below presents an overall look at how things got this bad.

 http://Italy Update - How Italy Got Into Its Current Mess.html

GreatUncle Thu, 05/31/2018 - 19:24 Permalink

Does it really matter who bought with the freshly created?

They are not able to take it out without a serious economic contraction.

Watching CB's trying to remove the QE lol ... yea right.