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EU: Ready for launch
  • Vitaliy_KiselevVitaliy_Kiselev
    Two year bonds for Italy (passed 7% with easy today)

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    Spain

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    France
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    Belgium (2y,5y,10y):

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    5 year CDS on Italy, Spain, France, Germany:

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  • Vitaliy_KiselevVitaliy_Kiselev
    Spanish Treasury Cancels New 3Y Auction

    Given the recent market reaction to short- and mid-dated bond auctions in the European sovereign space, it seems the Spanish have blinked and decided to cancel the planned 3Y auction for next week. Reuters is reporting that instead of a single 3Y new issue, they are reopening 3 existing deals in the hope it will be easier to garner demand across several maturities and potentially more fungible for managers to add to existing positions than create new ones. Of course, it really doesn't matter too much as what we are concerned with is the secondary-trading 2015, 2016, and 2017 bonds will now be perfectly repriced at whatever is marginal demand for new risk positions - which we suspect will not be positive. The main reason for the shift to off-the-run, we suspect, is that the ECB is now allowed to 'buy' the bonds (not at re-issue but in the secondary pre-acution) as it is not allowed to buy primary issues. Once again - it smacks of desperation.

    Via: http://www.zerohedge.com/news/spanish-treasury-cancels-new-3y-auction


  • johnnymjohnnym
    So stupid to let the ECB cater to the financial sector. Then again, they probably think it's smart:)
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