Italian Bond Yields-- merged threads

[leicestersq]

I always try and think that the market price for something is equally balanced between buyers and sellers, and equally likely to rise or fall from any given level.

But this looks a bit different, the ten year yield is climbing rapidly, and is fast approaching the critical five percent level.

Italy is too big to bail, default will have to follow, and when the magic of government bonds never defaulting is broken, all hell will break loose. so is Italy where the damn will finally break?

http://www.bloomberg.com/apps/quote?ticker=GBTPGR10:IND

[yellerkat]

Come interessante!

[JimDiGritz]

Come interessante!

Inter!!! Inter!!!! Inter!!!!

[Bloo Loo]

its contained though. that graph only goes up to 4.8.

phew!

[interestrateripoff]

The game is hotting up, who next for the printing press bailout.

[ParticleMan]

sorry to argue with an esteemed poster but methinks Spain will beat them to the honour.

BTP is a special case - an astonishing degree of leverage can (still) be accessed via the Eurex future.

Trading the underlying (on Eurex Bonds platform) is somewhat similar to playing the LSE's AIM...

[ParticleMan]

who's the other side of that trade.I mean who'd take it?

Which trade?

Derivatives (even ones hacked together at home on retail platforms) might well require a swap (back to back purchase and sale) of the same instrument.

[ParticleMan]

nb: in my experience no useful conclusions can really be drawn from the behaviour of price in an illiquid market.

Other than the market being illiquid, that is.

And given which week of the year it is (and on which days national and market holidays variously align) the knowledge gleaned (that European gilts are slow moving at present) is scarcely surprising.

Next week on the other hand may well tell us something we don't yet know (or confirm something we suspect).

Edited December 29, 2010 by ParticleMan

[TwoWolves]

Next week on the other hand may well tell us something we don't yet know (or confirm something we suspect).

As does every week

[Realistbear]

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8230413/Italys-debt-costs-approach-red-zone.html

Financial Crisis

Italy's debt costs approach red zone

Italy's borrowing costs have jumped to the highest level since the financial crisis over two years ago, raising concerns that Europe's biggest debtor may slip from the eurozone's stable core into the high-risk group on the periphery.

Red lights flashing as monotone female voice repeats "code red on debt levels......."

2011 should see lots of poisons hatching out of the mud in the EZ.

Funny how the Euro remains so stable.

[spanman]

http://www.housepricecrash.co.uk/forum/index.php?showtopic=156803

[Beggar Thy Children]

Are we gonna see in the new year with a bang?

Nice.

[Realistbear]

Euro is doing well today. Lots of confidence still left to knock out of 'em.

FTSE had a shock down day--especially after all that bearish news out today. House prioces dorpping, unemployment worsening, NY sales awful .....ordinarily a buy signal based on the prospects of awful future earings. Dot.com days back again where the worse things got the higher the stock went until it all went bag. IMO the FTSE is playing Indian. Keep bidding it up until the first man blinks and the first to hit the sell button wins it all.

[stormymonday_2011]

There is a tale to be told about Italian banking which has not yet fully broken according to this article

http://www.nakedcapitalism.com/2010/12/why-are-irish-political-leaders-so-keen-to-collude-with-the-bank-regulator-in-covering-up-blatant-regulatory-breaches-at-unicredit-ireland.html

[interestrateripoff]

The Euro is stable because the problem is contained.

God don't you people read the news.

Edited December 29, 2010 by interestrateripoff