Do Not Dizpute Ze Zafety Of Ze Bobl, You Schweinehund

Discussion in 'Wall St. News' started by ASusilovic, May 28, 2010.

  1. Waiting for that €9.5bn Friday Italian bond auction?

    Here are some charts to mull over ahead of (another) litmus-test of demand for peripheral eurozone debt. Italy will be selling three- and 10-year BTPs plus seven-year CCTs.

    Courtesy of Marc Ostwald at Monument Securities, the charts show the spread between three- and 10-year German and Italian bonds. The point, Ostwald says, is that there’s already a rather large concezzione priced in to help take down supply in today’s sale (not to mention demand from local banks or European Central Bank buying).

    [​IMG]

    [​IMG]

    In fact, he says, if you’re looking for an “interesting trade” this Friday, there’s a 98 basis point pick-up to be made by selling the five-year German Bobls from Wednesday’s failed auction, in exchange for Friday’s three-year BTP. That’s right, selling safehaven German debt to buy Club Med Italian bonds.

    We expect one of Deutschland’s debt defence brigade to start issuing a statement any second now . . .

    DO NOT DIZPUTE ZE ZAFETY OF ZE BOBL
    SHOULD YOU CHOOSE TO ZELL ZE BOBL
    BAD ZINGS WILL HAPPEN TO YOU
    SCHWEINHUND.

    http://ftalphaville.ft.com/blog/201...ressant-eurozone-bond-trade/?updatedcontent=1

    ROFL ! Ha, ha, ha...:D :) :p