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| Bond futures breaking lower, with plenty of room to go |
Notice how Spain was forgiven the budget deficit? The latest fiscal treaty was signed 10 days ago and already the Bono Estente's are breaking it. They are given the permission to do that because... they are too big to fail and too big to bail. If there is a happy ending to this story, I would be surprised. And if the move in US bond yields continues higher - do you really think owning European bonds makes much sense, given the risks?
Some nice reads today, I felt lazy and did not summarize them all. But you are getting this for free, so any complaints to Twitter, Facebook, email and paper.li and I will send payment instructions. If you are a corporate account, I can negotiate a 40% kickback to your personal account.
My views: EURUSD to continue dropping and more crisis in Europe. Portugal and Spain are the next stops, after Greece is settled. Weak feelings that long-term yields in US moving up and stocks higher.
Joke of the Day: The EU commissioner trying to stop tax cheats from hiding money in Switzerland is puzzled why Austria and Luxembourg are standing in his way – euobserver.com
News – Between The Hedges
Euro Crisis Press Summary – Open Europe
Eurozone delays decision on size of bailout fund until end of March; Challenge against ESM submitted to Estonian Constitutional Court
Markets – Between The Hedges
Recap – Global Macro Trading
Bank of Japan and yen, US 10-year bonds breaking down?
The Closer – alphaville / FT
Debt crisis: live – The Telegraph
Europe Crisis Tracker – WSJ
EURO CRISIS
Zur problematik der TARGET2 – alphaville / FT
Bundesbank thinks Target2 is not problematic – unless the Eurozone breaks up
Bundesbank thinks Target2 is not problematic – unless the Eurozone breaks up
Steen Jakobsen: Spain is the country after Portugal which is most at risk if the EU fails to make the ESM firewall big enough.
European Countries That Make You Go Hmmm… – Big Picture
For those who did not read Grant Williams’ pdf report.
Competitiveness of the euro area and within the euro area – ECB
Draghi speech 13-Mar says a number of countries need to increase competitiveness and ECB or monetary policy cannot help.
EU countries as divided as ever on finance tax – euobserver.com
EURO CRISIS: GREECE
Few Hedge Funds Gain in Greek Bond Saga? – Pension Pulse
OTHER
Citi fails Fed stress test – alphaville / FT
Fed Stress Test Released: Citi, SunTrust, Ally And MetLife Have Insufficient Capital – ZH
Four reasons why yen weakness has nothing to do with the dollar – ZH
Deutsche Bank FX: current accounts, Asia’s underperformance, appreciation consensus, BoJ surprise
VIX Plunges To 5 Year Low – ZH
A VIX of 15!?! Meet the New Reality – VIX and more
Is Dodd-Frank Too Complex to Work? – HBR
Short and nicely linked piece.
Short and nicely linked piece.
From FP: An exclusive conversation with Nouriel Roubini and Ian Bremmer on the toll of war with Iran — and why China and Russia just don’t care anymore what the United States thinks of them.
The great financial crisis: Lessons for financial stability and monetary policy – ECB (pdf)
158 pages, an ECB colloquium held in honour of Lucas Papademos, 20-21 May 2010
How To Start Keeping A Journal – The Kirk Report
At some point you have probably already read somewhere about the importance of keeping a trading journal. h/t Abnormal Returns
Finding alternatives to LIBOR – Sober Look
A Complex Simplification of the CDS Market – TF Market Advisors
20 Twitter feeds all financial advisers should follow – Investment News
Ray Dalio’s Former Assistant Tells All – DealBook / NYT