From Pizza ovens exploding in Italy, to Spain now running out of Tappas... ah bounty of provencial, bet you are sleeping well but ...a little too much butter n cream for my tastes but love the presentation must be a nice sensory overload ;)
Futs unhappy again here ... lots of trading to be done
Europe Again In The Spotlight After Latest Weak Spanish Auction, Sends Futures Much Lower
Submitted by Tyler Durden on 08/04/2011 - 07:04 Bond European
Central Bank Eurozone Ireland Italy Japan Monetization Portugal Reuters Switzerland United Kingdom
While the key topic this morning is the BOJ's intervention in the JPY, which had been selling the Japanese currency virtually all night and was rumored to be constantly on the USDJPY bid (a move which is doomed to failure just like all such previous attempt by a central planner to take on the Bernank), the primary reason why futures are largely in the red is due to yet another very weak Spanish auction which sold €3.3 billion in 2014 and 2015 bonds at the highest yield since 2000. This is despite the rumored resumption of ECB bond buying as was reported by the Telegraph previously, a development which would mean that monetization via currency devaluation has commenced indirectly in Switzerland, Japan and the Eurozone, (soon the UK) in advance of the Fed's own third QE round. As for the Spanish bond auction specifics, the Treasury was expected to sell between €2.5 and €3.5 billion, ending with an amount of €1.111 billion of 4.4% bonds due 2015, a yield of 4.984% and a 2.4 Bid To Cover, and €2.2 billion in bonds due 2014 at a just modestly lower yield of 4.813% (compared to 4.291% in July) - the Bid To Cover was also a very weak 2.14. Once again, all these results assumed the ECB would backstop futures secondary market purchases: should this be proven to be a bluff, look for Spain to follow Italy in a self-imposed bond market exile. |
