All eyes on Italy...

Discussion in 'Wall St. News' started by ASusilovic, Apr 29, 2010.

  1. There’s a Swine Flu joke in here somewhere…

    But if you want to take the temperature of the eurozone, so to speak, and see whether Greek crisis contagion is really catching on, look no further than Thursday’s Italian bond auction.

    Italy is, of course, one of the forbiddenly-porcine acronym countries; comprising Portugal, Italy, Ireland, Greece and Spain. Burdened with some budgetary problems that bear a resemblence to those of Greece, this Club Med member already had something of a hiccup on a Tuesday morning bond auction.

    On that day the country sold €9.5bn of six-month bills. But crucially, received only €9.78bn in bids for the bonds — indicating a bid-to-cover ratio of just 1.02. Below 1 is considered a failed auction.

    What’s more, the average yield was 0.814 per cent, far more than analysts had expected and above the 0.567 per cent yield on offer at an auction of the same type of bonds last month.

    Thursday’s sale of 2-year, 5-year and 10-year bonds is for a smaller amount of debt — between €5.5bn and €8bn according to Bloomberg — but it is the first Club Med bond auction since Standard & Poor’s cut Portugal’s sovereign credit ratings on Tuesday afternoon, and Spain’s on Wednesday.

    The auction starts at 10am BST.
  2. C6H12O6


    Completely false.
    Sadly I don't expect nothing else but lies from the british/american press.

    But let's talk about the auction, how did it go ?

    April 29 (Bloomberg) -- Italian two-year notes broke an eight-day slide as the nation raised almost all of the 8 billion euros ($11 billion) it aimed for in debt auctions, spurring demand for securities from Greece, Spain and Portugal.

    Greek two-year notes rallied after Italy auctioned 3 billion euros of 2012 notes, 1.16 billion euros of 2017 floating-rate debt and 3.5 billion euros of 2020 bonds, a total of 7.7 billion euros. European Union Economic and Monetary Affairs Commissioner Olli Rehn said he’s confident that talks on a rescue package to buy Greece “breathing space from pressures of financial markets” will conclude in coming days.

    “The auction has gone well, and on a short-term basis this is definitely a good sign,” said David Schnautz, a fixed-income strategist at Commerzbank AG in Frankfurt. “We had some relief, but overall the question is whether investors will take this as an opportunity to unload inventories. We are still in this political limbo situation, so from that perspective we aren’t yet ready to give the all-clear.”
  4. Our stock market is saying, "no worries".. regardless of the rhetoric.
  5. I love BTPS! Super nice auction!