International buyers shunning European bonds as LTRO funds dry up

From the FT: Investors pull €100bn from eurozone bonds

  • Percentage of international Spanish bondholders at 33% at end of Jan from 44% in 2010
  • Bankers say int’l community used LTROs to further lighten up
  • Deutsche Bank analysts estimate that Spanish banks have already used up LTRO funds
  • DB says Italian banks still have LTRO funds to buy debt, keeping BPT yields from climbing for now

“The day of reckoning may be approaching soon for the eurozone,” says one government bond trader at a US bank.

Author: Adam Button

Adam Button is the editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes deeply in the value of knowing every tidbit of news. He has a background in journalism and was formerly the head of the markets team at the Canadian Economic Press. He is a graduate of Ryerson University and completed Level 1 of the CFA program. Adam lives in Montreal, follow him on Twitter: @FX_Button.

5 Comments

  1. Looking at Asian index futures Adam, mixed but EURJPY looks like it`s got some way to go and if Tokyo opens to the upside, it should add to the momentum….more room for EURAUD too…$1.32 looks potentially vulnerable in EURUSD…USDJPY 80 level looks a tad vulnerable on a re-test toward the end of the US session

  2. i don understand anything? SO some guys are closing their shorts on euro usd..while the cirsis is commign back again .. CAN PLEASE EXPLAIN SOMEOBDY FOR ME WHAT DOES THIS MEEAN FOR EURO USD IS THE DOWNTREND ENDING ??/

    PLEASE TELL ME IN PLAIN ENGLISH

  3. If the crisis is getting worse, don’t expect the euro to do better.

  4. ADAM IS THIS A REALLY SHORT COVERING IN euro …SO SOME PEOPLE THINK THAT THE EURO WILL GO NO LONGER DOWN ? WHAT IS THIS?

  5. In plain english, they euro will go down when enough people start buying, and will go up when too many people are selling :)

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