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  • Greece cancels plans to sell additional debt

    Alexander Gloy

    Greece just cancelled a road show that was supposed to begin on Wednesday in London to sell more debt. The Prime Minister said “Greece won’t come to the market now” and “Greece is on target for deficit cuts”. Guys at the EFSF (European Financial Stability Fund) – on your marks! Looks like you might be…

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  • Irish and Portuguese spreads at all time highs

    Alexander Gloy

    All-time highs for Portuguese and Irish 10yr yield spreads: 10yr Portuguese government bond yields – intraday September 20, 2010. Source: Bloomberg. 10yr Irish government bond yields – intraday September 20, 2010. Source: Bloomberg. Market fears that tomorrow’s (9/21) EUR 1.5bn auction of fresh Irish debt (4 and 8 years) might not go well. Irish 10yr…

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  • Ireland: Rumors, rumors… and spread widening

    Alexander Gloy

    Here we go again: Irish 10yr government bond yields 6.27% (+0.23) this morning after article in the Irish Independent about possible IMF intervention. Rumors of Anglo Irish Bank going bankrupt. 10 year Irish government bond yield. Source: Bloomberg.com Portugal 10yr now at 6.07% (+0.11), highest since May.

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  • BoJ intervenes to weaken JPY

    Alexander Gloy

    BoJ (Bank of Japan) intervenes for the first time since 2004 in the currency market after the Yen reached at 15-year high versus the USD (hurting Japanese exporters). According to rumors they are throwing JPY 200-300bn (USD 2.4-3.6bn) on the market. Not huge, but it draws a line in the sand. Unless other central banks…

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  • Greece: “oops I did it again” – but only for 6 months

    Alexander Gloy

    On Tuesday Greece sold 26 week bills with a yield of 4.82% (vs 4.65% in July). Six months is the longest debt Greece can currently sell. Any longer maturities would cost more than the 5% level they are currently paying for the EU bail-out. Today the 10yr government bond yield was unchanged at 11.37%. Wasn’t…

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  • Greece still imports EUR 3 for every EUR 1 it exports

    Alexander Gloy

    As John Mauldin (http://www.frontlinethoughts.com/) thankfully points out in his latest newsletter Greece still imports three times (!) as much as it exports. No surprise here as the Euro does not allow them to regain competitiveness by devaluation. Germany benefits from a weak Euro, but Greece’s trading partners are mostly inside the EUR block. An average…

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  • We have no clue about what is going to hit us next

    Alexander Gloy

    Google trends on the Greek crisis: 12 months ago nobody cared. Then, suddenly, it’s on the front page of the Financial Times. Lesson learned: we have no idea which financial bomb is going to blow up in our faces next. Argentina? Venezuela? Hungary? Ukraine? Ireland? Social unrest in Greece? Search term “Greek crisis”. Source: Google…

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  • A deeper look at the EUR 80bn Greek bail-out treaty

    Alexander Gloy

    The EUR 80bn bail-out treaty from Greece (42 pages) is an interesting read. Among the countries providing credit are such pillars of wealth and stability like Ireland, Spain, Cyprus, Luxembourg, Malta, Portugal, Slovenia and Slovakia. The Slovak parliament in August voted not to participate. Not to be disrespectful of small countries, but Cyprus and Malta will…

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  • European Periphery on Fire

    Alexander Gloy

    Greek 10yr yields surge to 11.71% (from 11.35% a week ago) after reports of EUR 4bn deposits having left the Greek banking system in August. Greek 10yr government bond yield. Source: Bloomberg.com In the US it is illegal to call for a bank run, so all I am going to say is that if you…

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  • BoJ emergency meeting

    Alexander Gloy

    The BoJ (Bank of Japan) announced an emergency meeting for 5am GMT Thursday. According to rumors the recent strength in the Japanese Yen and falling share prices will force the BoJ into further “monetary easing” (read: printing money). Gold owners should rejoice – all major Central banks have now boarded the train of self-destruction. To…

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