"Traders Have Difficulty Getting Prices": Italy Bond Massacre Blame Game


Italian bonds are so volatile that traders are having difficulty getting pricing. Who will Italians blame?

There was a strong reaction in the 10-year Italian bond in response to President Mattarella’s blunder of forcing an IMF technocrat upon an unwilling parliament. ​

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The above chart shows a move of about 77 basis points in the 10-year yield.

The yield on Italy's two-year bond yield (top chart) moved an amazing 240 basis points on the president's interference in the last election.

The word "massacre" seems insufficient to describe the carnage.

Things are so bad, traders are having difficulty getting pricing.

Placing the Blame

With Greece, it was easy for the EU nannycrats to place blame on Alexis Tsipras for his stance on exiting the Euro.

This is different. The Italian government coalition, although Eurosceptic, backed off an official exit stance.

Italian citizens can (and will) blame the EU/EMU and President Mattarella for cooperating with Brussels and the widely despised IMF.

For further discussion, please see Italy: "Whatever It Takes" Stage Two, President Mattarella’s Strategic Blunder.

Mike "Mish" Shedlock

Comments (5)
No. 1-5

Given enough behind the scenes threats, and the ECB will have all this papered over by the weekend.


It's no use trying to get the message across about the EU. Until you've encountered it you won't understand. There's a black heart at the centre as cold as anything you would encounter in the regime's from which it was born. It is not a force for good and some in there will be rubbing their hands together if Italy gets a bloody nose as it will enable them to grab more power.


Oh, what a surprise! The ECB buys up almost all the Italian government bonds issued, but does not act as a true "market maker" and then there is shock when the thinly traded market for these bonds does not function properly when there is a sell-off. I guess there are not supposed to be sell-offs. LOL... You cannot make this stuff up.


only way this ends (period) is Italy (spain) leave EU,write of the 2 plus tril dept or prepare for civil war/guerilla warfare/martial law!


Blaming the EU or “The Germans” is completely misplaced. Instead, the blame, as always, belongs with local politicians. Who have been making deals with the two former, that in exchange for funds allowing themselves to personally live large, they promise to treat their population and economy as cash crops. I.e: “ ’Germany’ hands me money, I force my captives to repay Germany. Rinse. Repeat. For as long as my captive drones are sufficiently receptive to indoctrination to keep believing the whole, idiotic ‘system’ has some, any, sort of value.”

Ending the farce is no harder than to simply default on all of it. With a middle finger raised as tall as can be mustered. The debt is a relic of a failed experiment in crass theft called financialization. No more binding in the conscience of current Italians, than whatever trumped up “contracts” may have existed back then, to justify that their ancestors were similarly indentured to that eras ruling class.

But of course, once you properly inform Germans that have worked hard for their money that the guys they handed them to, are now unable to repay due to spending too much time dangling from lamp posts, the Germans will of course stop the drip. Which makes exactly not one iota of difference to most Italians anyway, as all the money ever did, was further entrench the rulers and their sycophantic hangers on.