Holy Shitshow: Recordathon In French Bank, European CDS Following Atriocious Italian Bond Auction, Dexia Bail Out, Libor Explosion

Monday, September 12, 2011
By Paul Martin

by Tyler Durden

As we speculated on Friday, Europe has opened, and it is ugly. In fact, Europe has never been closer to a bank and market holiday than it is right now. Why? Let’s go down the list.

First, the French banks which are about to be downgraded any minute, have just seen their CDS surge to records:

BNP CDS +24 to 299 bps
SocGen CDS + 26 tp 416 bps, new all time record wide
Credit Agricole CDS + 25 to 315 bps, new all time record wide. Whoever followed our advice from last week and bought this latest jump congratulations.
And joining in the record party, are Belgium +25 at 307 bps; France +12 at 190; Italy +40 at 505; and Spain +44 at 445 bps. All new records
Next, Italy sold 91 Day and 1 Year bills, both of which came far worse than expected and this is despite the ECB buying this stuff up non stop.

Italy Sells 1-Year Bills to Yield 4.153% Vs 2.959% in August, Bid to Cover slides from 1.94 to 1.53
Italy Sells EU4 Bln of 3-Month Bills to Yield 1.907% Vs 1.034 last, Bid to Cover slides from 2.42 to 1.86
Lastly, Dexia, which we also discussed on Friday, was just implicitly bailed out. According to De Tijd:

The Rest…HERE

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