Posts Tagged ‘Italian 2/10 curve’

Notes From Underground: Angela Merkel Sang; Mario Is Back; and There’s Going to Be Trouble

September 4, 2012

As the markets toiled to regain their summer strength, ECB President Mario Draghi provided the elixir to keep the summer party kicking. NOT ONE TO BE BALLOON POPPER, THE ECB PRESIDENT LET IT BE KNOWN THAT THE DRAGHI MANDATE WILL PROVIDE FOR BUYING OF SOVEREIGN DEBT OF UP TO THREE YEARS. It seems LTRO IS ALIVE AND WELL AND LIVING IN FRANKFURT. Mr. Draghi let the markets know that in his opinion, ECB purchasing of short-term is part of the Bank’s mandate, “to intervene in bond markets to wrest control of interest rates and ensure the euro’s survival.” (BLOOMBERG NEWS)


Notes From Underground: A Quiet Day As The FOMC Meeting Begins Tomorrow

July 30, 2012

No real news out of the Geithner meetings. Schaeuble and Geithner offer up the same vapid phrases but interesting that the Geithner/Draghi meeting in Frankfurt yielded no news and it seems to be a blackout. Geithner and Draghi are two very verbose policymakers but as of yet … nothing. This evening though the S&Ps have regained all of today’s losses, which is very minor as the day was unusually quiet. The month end is tomorrow so fund managers will probably window dress as the S&Ps attempt to hold on to a 2% gain for the month.


Notes From Underground: “Everybody’s Talking At Me I Can’t Hear A Word They’re Saying…”

December 1, 2011

It was a day of dueling flapjawing as the European elite was out talking about everything that needs to be done to save the EURO and Sarkozy promising that there would not be any European defaults. Again to paraphrase Jimmy Breslin: Sarkozy is a little man in search of a balcony. The time for public orations is past and the call to action is immediate and real. Global investors don’t want any more rhetoric. Next Friday is considered the day of reckoning but if the EUROCRATS have any sense all the needed policy will have been put in place by the December 9th meeting so that the markets will have absorbed the “shock and awe” and there will be no disappointment.


Notes From Underground: No Surprises This Monday

November 28, 2011

Even as the rumors of a massive IMF intervention to support Italy faded into the New York close the equity were buoyed by the robust start to the HOLIDAY SHOPPING SEASON. Increased sales and no bad news from Europe left the risk on (deleveraging halted) for at least another day. The 2/10 Italian curve aided the rally as the curve MOVED 50 BASIS POINTS AND CLAWED BACK TO A POSITIVE SLOPE. IN YESTERDAY’S BLOG IT WAS NOTED THAT THE 2/10 CURVES OF THE SPANISH AND ITALIAN DEBT MARKETS WERE NOW AN IMPORTANT INDICATOR OF DEBT STRESS AND FEARS FOR THE ECONOMIES OF THOSE ON THE PRECIPICE OF CRISIS.