Now, It’s Italy’s Turn As Spain Continues To Break All Records!

• The contagion is spreading like wildfire amongst the PIIGS. How long do you think this will last? My guestimate is: in Aug-Oct 2012 the detonations will start, the fuse is already lit. The Eurozone will implode triggering a massive global economic, financial and currency meltdown. This is the Illuminist plan to drive the world to their Luciferian New World Order, World Government, One World Currency, Global Supra-National Central Bank –> ‘666’! Their Satanic methodology: Order Out of Chaos!
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  Now, It’s Italy’s Turn As Spain Continues To Break All Records! 
  by Tyler Durden, http://www.zerohedge.com/ 
  … Spain’s 10 year just hit a record 6.72%, a spike of nearly 30 bps on the day, and just shy of the apocalyptic 7.00%, at which point everyone will quietly move to the bomb shelter (and JPM is not helping things, saying the total Spanish bank bailout may hit €350 billion even as the Spanish bailout fund has just €4 billion left in it…), even as the 2 Year rises above 5% for the first time since December 2011 on some rapid curve inversion moves. No: today the market simply had one of those epiphanies where it sat in front of a map, and finally remembered that last year as part of the continental contagion spread that forced the November 30 coordinated global central bank intervention, Italy was at the forefront.
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  Sure enough, 2011 is once again becoming 2012. Today’s catalyst was an Italian sale of €5.73 billion in 5 and 10 year bonds, less than the maximum €6.25, where €3.391 billion of the 5 Year was sold at a 5.66% yield, compared to 4.86% on April 27, and the BTC of 1.35 vs 1.34. But the optical killer was the €2.341 billion in 10 Years which priced above 6% for the first time in a long while, coming at 6.03% compared to 5.84% in April, and a dropping BTC of 1.40 compared to 1.48 before. The result is a blow out in the entire Italian curve, with the 10 Year point widening by 28 bps, and sending Italian CDS wider by 21 bps to 543 bps. In other words: welcome to the party Italy. You have been missed. Some perspectives on the first of many ugly Italian bond auctions:
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  MICHAEL LEISTER, RATE STRATEGIST, DZ BANK, FRANKFURT
  “Those figures are really unconvincing. The 10-year benchmark has been issued (at a price) below secondary levels and the bid/cover for the new bond doesn’t look too strong. All these on the back of quite a concession into the auction.
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  “The auction doesn’t provide any arguments to become bullish on peripherals again. We’re seeing Italy being taken hostage by the Spanish concerns. The market does not discriminate anymore, it is either ‘risk on’ or ‘risk off’, you either buy periphery as a whole or you sell it. “The market isn’t happy with this auction.”
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  read more!

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