"10Y Italian bonds (BTPs) ended the day at their second-widest closing spread
to Bunds ever (at 533bps). Only November 9th saw a wider
closing print and of course we saw margin hikes at LCH CC&G. 10Y
yields are at 7.16%, their highest since just after Thanksgiving but we
do note that 2Y yields have stabilized at around 5.00% yields (having peaked
near 8% during thin Thanksgiving trading). It seems apparent that perhaps
traders front-running LTRO's impact have compressed the 2s10s term structure but
much clearer to us is Mr. Market's obvious desire for more
money-printing now as BTPs are pushed to unsustainable levels once
again - and the banking-to-sovereign vicious circle transmission of
insolvency cranks up..."
at http://www.zerohedge.com/news/italian-bonds-surge-early-november-wides
at http://www.zerohedge.com/news/italian-bonds-surge-early-november-wides
