{"id":51831,"date":"2020-03-18T09:34:05","date_gmt":"2020-03-18T14:34:05","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51831"},"modified":"2020-03-18T09:34:07","modified_gmt":"2020-03-18T14:34:07","slug":"italian-debt-crashes-prompting-ecb-intervention","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51831","title":{"rendered":"Italian Debt Crashes Prompting ECB Intervention"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/italian-debt-crashes-prompting-ecb-intervention\">Italian Debt Crashes Prompting ECB Intervention<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Welcome to the brave new world of a helicopter money, aka the Magic Money Tree (MMT), where everything is crashing and nowhere more so than in Europe, which having made a dramatic U-turn on its historic fiscal stinginess, and where a flood of debt is now expected, bond yields across the continent are soaring even as European stocks crater, and nowhere more so than in Italy where the 10Y bond yield,&nbsp;<strong>which was trading below 1% as recently as one month ago, exploded as high as 2.99% this morning, before easing some of the rout following media reports that the ECB is intervening via the Bank of Italy.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier in the session, Italy\u2019s 10-year yield climbed as much as 64bps to 2.99%, pushing the BTP-bund spread up to 44bps wider to 323bps, the most since 2018 after a&nbsp;<em>La Stampa&nbsp;<\/em>report that Rome may extend the nationwide lockdown to beyond April 3.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/Italy%2010Y%20yield_6.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Then shortly after 6am ET, Italian bonds trimmed declines after Radiocor reported the ECB was invervening in the domestic market through the Bank of\u00a0Italy. &#8220;Moves are flexible in terms of timing and of markets targeted, and can continue as long as needed&#8221;, Radiocor news agency reported, citing central banking sources.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even that, however, barely made a dent, with Italy\u2019s&nbsp;10-year yield still almost 40bps higher at 2.72% after earlier climbing to 2.99%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There was no ECB intervention in other European bonds, although they certainly also need it, with Bunds suffering sharp losses as the 10Y Bund yield surged as high as -0.20%&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/10Y%20bund%20yield%203.18.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">&#8230; although paring some losses following reports Germany was softening opposition to Italy\u2019s proposal for joint EU bond issuance: German\u2019s 30-year swap spread narrows 11bps to 0bps, the tightest since 2014, amid concerns that any fiscal loosening will lead to more bond issuance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Italian Debt Crashes Prompting ECB Intervention Welcome to the brave new world of a helicopter money, aka the Magic Money Tree (MMT), where everything is crashing and nowhere more so than in Europe, which having made a dramatic U-turn on its historic fiscal stinginess, and where a flood of debt is now expected, bond yields [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,233,1849],"class_list":["post-51831","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-ecb","tag-financial-markets"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51831"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51831\/revisions"}],"predecessor-version":[{"id":51832,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51831\/revisions\/51832"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}