Good news for Italian and Spanish bond players. Yields in highly indebted, bad balance sheet, European nations are plunging on chatter that the ECB is thinking about changing the QE rules, shifting purchases away from the size of the economy to the size of the debt.
This, of course, is laughable fuckery of the first magnitude.
In other words, since Germany is the largest economy in Europe with the best balance sheet, the ECB will begin buying less of the high quality paper in exchange for horrid paper, shoveled out by nations like Italy and Spain.
“It’s the type of thing the market wants to hear,” said Owen Callan, a Dublin-based fixed-income strategist at Cantor Fitzgerald LP in Dublin. “Out with the bunds, in with the bonos,” he said, referring to German and Italian securities.
The Italian 10 yr is down 23 bps to 1.11%, a 17% drop.
The Spanish 10 yr is down 22 bps to 1.00%, a 18% drop.
German bunds are up 2 bps to -0.10, a 16% jump.
Italian debt is 132% to GDP.
Markets love this shit and is eating it up like a bowl of freshly served feces. Yummy!
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Yup, I see exactly why Moody’s downgraded UK’s rating instead of EU-Germany. Really wonder how long before the next country’s citizens follows UK’s lead.
This is crazy right? And why is the market eating it up?
same people trying to suppress the trash same people juicing the equities
They won’t stop until western currencies are completely worthless. It appears to be a goal they are hell bent on achieving.
Make The Roman Empire Great Again
Market candy laced with crack.
– Toilet Bowl –
except most armchair bulls interpret as good. of course.