Posts Tagged ‘Italian bond futures’

Notes From Underground: A Little Austerity Goes a Long Way

December 5, 2011

The new autocratic regime in Italy has agreed to a ramped up AUSTERITY BUDGET in which an extra 30 BILLION EUROS will have to be found and then cut from the public arena. Being that Mario Monti was the Eurocrats’ choice to head the Italian government, it seems that PM MONTI is only concerned about meeting the desires of the powers that insisted on his taking the reins of governance. ITALIAN BOND FUTURES staged a very impressive rally as the BTP (10-year note) dropped 71 basis points to close under 6%. Also, the 2/10 year curve in Italy also steepened to +52 basis points from Friday’s close of +38 points. Spain and the other PERIPHERALS also performed well and the FRENCH/GERMAN 10-year differential closed at a mere 92 basis points. As the BTP futures rallied 500+ points, the EURO actually underperformed and by the close the EURO currency was basically unchanged .

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Notes From Underground: The Good, the Bad and the Ugly (or Another Spaghetti Western)

July 12, 2011

It is very difficult to find the GOOD in the global financial world, while the BAD and UGLY abound. The GOOD could be “found ” in low interest rates on BONDS and NOTES in the U.S. Yet when you scratch below the surface, the fundamental reason for a 3% 10-YEAR NOTE is nothing to crow about. Poor employment data and the fear of a credit crisis in EUROPE is forcing investors to find shelter in the debt instruments of the U.S., even as the Washington budget circus captures the headlines. The subtext of the GOOD is that the EUROPEAN DEBT DRAMA almost cratered the global equity markets but support was found for the EQUITIES and ITALIAN BONDS when the ECB purportedly intervened in the DEBT markets by buying Italian and Spanish debt.

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