I watched some stupid movie the other night and in it was a great line, "Better to die like a tiger than live like a pussy" ! <*)))><
http://www.zerohedge.com/article/eu...eeds-30-day-euro-repos-hitting-one-year-highs EUR Surging As Banks Scramble To Cover Liquidity Needs With 30 Day Euro Repos Hitting One Year Highs Whether the catalyst was this morning's 6 Day ECB liquidity providing market operation at this point is immaterial: the outcome is one of the biggest surges in the EURUSD in the history of the pair, which at last check was fast approaching $1.25. This EUR surge is nothing more than a liqiuidity scramble and should in fact be interpreted as EUR adverse and is indicative of an even worse funding pictures in Europe and among European banks. Now it's July 1 and the [3 month] repo rate has snapped higher by just over 4bps to 0.46% - a new 12 mth high. Of course, the recent acceleration in the rise in Euribor and Euro Libor is also scary, and tells you that banks are really pulling in their horns on each other and continuing to 'hunker down' -- of course, why shouldn't they when nobody knows whether the counterparty has cancer or is just fine? A lender trying to determine an appropriate rate of interest when such binary scenarios/thinking are so well defined is incentivized to just say no, right? I don't amaze much, but it amazes me that we watched this exact reel here 2 years ago and investors still talk about TED spreads or Libor-OIS... talk about generals analyzing the last war. It does NOT surprise me that the press was trying to put a nice face on the lower-than-expected 3mth facility uptake yesterday as the LTRO rolls off. I say: WHO CARES? The real story is the complete collapse in confidence among "highly interconnected banks" who now wish they weren't so connected.