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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (31005)	4/19/2012 8:13:52 AM
From: Oblivious	Respond to of 224144

" I just turned on CNBC to find out.

To: GROUND ZERO™ who wrote (31005)	4/19/2012 8:17:15 AM
From: Oblivious	Read Replies (1) \| Respond to of 224144

Spain Meets Target at Bond Auction, Borrowing Costs Rise By Emma Ross-Thomas - Apr 19, 2012 Spain sold 2.54 billion euros ($3.3 billion) of bonds, just above the maximum target for the auction, and its borrowing costs rose. Bonds declined after the sale. The Treasury sold its 10-year benchmark bond at an average yield of 5.743 percent, compared with 5.789 percent on the secondary market before the sale and 5.403 percent when it last sold them in January. It sold two-year securities at 3.463 percent. Demand for the 10-year debt was 2.42 times the amount sold, compared with 2.17 at the Jan. 19 sale, and the bid-to-cover for the bonds maturing in October 2014 was 3.28. “Expectations were centered on a good auction, and it was a mixed auction,” Peter Chatwell, a fixed income strategist at Credit Agricole said in a telephone interview. Today’s auction was the first Spanish bond sale since the Treasury sold near the minimum target of three- and five-year bonds on April 4 as the effect of European Central Bank’s unlimited three-year lending to banks started to fade. Spain’s 10-year yield has climbed about 40 basis points since then. “It doesn’t seem that all the cash has been spent but perhaps the willingness is not there to support these markets on the scale that was happening in January and February,” Chatwell said.

To: GROUND ZERO™ who wrote (31005)	4/19/2012 8:19:43 AM
From: Oblivious	Read Replies (1) \| Respond to of 224144

seems like all clear signal given for whatever reason UPDATE: 10Y yields are now +8bps from pre-auction and spreads +10bps and 2Y yields are popping even more according to Bloomberg as ES is -8pts off its pre-auction highs and EUR -40 pips from pre-auction. IBEX and broad European equities are off but credit (financials lagging) is deteriorating. Heading into the auction saw spreads and yields rallying to around 403bps and 5.77% respectively for 10Y and the EUR rallying solidly over 1.3150 (helping to push the USD down and implicitly S&P futures up). The 2Y started to leak back wider heading into the auction at around 3.37% (perhaps on rotation to bid for the 10Y?) and as the 430ET deadline passed, yields and spreads shifted higher in the 10Y too by 2-3bps. Spain 5Y CDS was 490bps (-5bps) and 10Y a smidge wider at 470bps. The total sold met the hoped for EUR2.5bn with both seeing a rise in bid-to-cover (which we already noted is useless as a statistic (given this was the second highest bid-to-cover ever for a 10Y bond). It was the all-important yield that told the tale of the fail which came at its highest in 5 months and almost 35bps cheap to the previous auction and the 3rd highest ever. SPAIN SELLS EU1.12 B 2014 BONDS SPAIN SELLS EU1.42B 10-YEAR BONDS SPAIN 2014 BONDS BID-TO-COVER 3.28 SPAIN 10-YEAR BONDS BID-TO-COVER 2.42 VS 2.17 AT JAN. AUCTION SPAIN 2014 BONDS AVG YIELD 3.463% SPAIN 10-YEAR BONDS AVG YIELD 5.743% VS 5.403% IN JAN. Markets seem undecided but credit is leaking worse and stock futures are giving up their knee-jerk response gains.