Posts Tagged ‘Spanish 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: FROM MERKOZY to MERDE???? (HAT TIP BC)

July 29, 2012
Friday afternoon the markets received a second dose of “constructive news” as the twitter was filled with noise about a phone conversation between Chancellor Merkel and President Hollande. The German and French leaders confirmed that everything possible would be done to save the EURO. The EURO rallied strongly at first but after further thought retreated to basically unchanged from Thursday.



December 27, 2011

The news during the last five days has been sparse as the regular year-end news items filter through the talking heads giving prediction after prediction about what will occur next year. Everything from the break-up of the EU to the closing of the Straits of Hormuz winds its way through the markets. The only significant story is the parking of LARGE AMOUNTS OF EUROS AT THE ECB as the distressed banks of Europe seem to want to place excess reserves with the Draghi Bank rather than buy the sovereign debt of Italy, Spain and the others.