Sold Eur 2.19 bln of May 17 2013 letra, yield 2.985 % (last 2.623%), cover 1.8 (from 2.9)

Sold Eur 0.71 bln of Oct 18 2013 letra, yield 3.302%  (last 3.11%), cover 3.2 (from 3.77)

Slightly worse cover and yields but most of target attained

There are bids ahead of it , but  likely stops just below. The level also equates to a 61.8% retracement of the Oct-Feb rally.

AUD’s sitting at a day’s low around 0.9965

Presently out to 477 bps.

Those nice folk at Reuters are telling me that’s a euro-era record!!!

Italian/German 10 year govt bond yield spread out to 424 bps

French/German 10 year govt bond yield spread out to 139 bps

Euro stoxx 50 down over 2% at writing (-2.15%)

Gold off 14 bucks since I got in, presently at $1,566

Oil (NYM light crude) off about a buck and a quarter since I got in, presently at $94.36

Benchmark 10 year US treasury yield off at 1.7980% from the 1.8238% I jotted down first thing.

All classic risk off fare, Greek, euro zone, Chinese worries very much to the fore at the start of the new week.

Even EUR/USD has started to move, down presently at session low 1.2865.

Barrier option interest well-documented at 1.2850.  Talk of 1.2850-1.3500 dnt in place maturing 18th May.

Industrial Output GDP (flash)
– March – – Q1 –
%mom %yoy %qoq %yoy

Median Forecast 0.3 -1.8 -0.2 -0.3
High forecast 1.4 1.1 0.1 0.0
Low forecast -0.5 -2.0 -0.3 -0.4
Previous period 0.5 -1.8 -0.3 0.7
-
Number of responses 18 7 21 9
-
4Cast 0.7 n/a -0.3 -0.3
ABN AMRO 0.2 n/a -0.2 n/a
Barclays Cap. -0.3 -1.8 -0.2 n/a
Berenberg Bank n/a n/a -0.3 n/a
BNP Paribas 0.6 n/a -0.2 -0.2
Capital Economics 0.3 -1.4 -0.2 -0.2
Citi 0.2 -1.5 -0.3 n/a
Commerzbank 0.7 1.1 -0.2 n/a
DZ Bank 1.4 n/a 0.1 0.0
Danske 0.9 n/a -0.2 n/a
ING -0.3 -2.0 n/a n/a
Investec n/a n/a -0.3 -0.3
LBBW 0.5 n/a -0.2 n/a
Natixis n/a n/a -0.2 -0.3
Nomura 0.0 n/a -0.2 n/a
Soc. Generale -0.5 -2.0 -0.2 -0.2
Standard Chartered 0.0 -1.9 -0.1 n/a
Sumitomo Mitsui n/a n/a -0.2 n/a
UBS 0.5 n/a -0.2 -0.3
Unicredit -0.3 n/a 0.0 n/a
West LB 0.3 n/a -0.3 -0.4
Westpac 1.0 n/a -0.1 n/a
–

HICP (final)
%mom %yoy (core)

Median Forecast 0.5 1.5
High forecast 0.5 1.6
Low forecast 0.4 1.5
Previous period 1.3 1.6
-
Number of responses 5 5
-
4Cast 0.4 1.6
Barclays Cap. 0.5 1.5
Capital Economics 0.4 1.6
Citi 0.5 n/a
Commerzbank n/a 1.5
Westpac 0.5 1.5
——————————————————————
* Median is based on above forecasts and is not intended to represent
a consensus.

The survey was conducted on Friday, May 11.

[TOPICS: MTABLE,M$GDS$,M$G$$$,M$XDS$,M$X$$$]

GDP (flash) ZEW
– Q1 – – May -
%qoq %yoy econ morale current cond.

Median Forecast 0.2 0.9 18.0 38.0
High forecast 0.9 0.9 25.0 45.0
Low forecast 0.0 0.2 5.0 35.0
Previous period -0.2 2.0 23.4 4.7
-
Number of responses 13 9 17 9
-
4Cast 0.0 0.7 20.0 38.0
ABN AMRO 0.2 n/a 18.0 n/a
Barclays Cap. 0.1 n/a n/a n/a
Berenberg Bank n/a n/a 15.0 38.0
BNP Paribas 0.2 0.9 25.0 45.0
Capital Economics 0.2 0.9 10.0 n/a
Citi 0.0 n/a 18.0 n/a
Commerzbank 0.2 0.9 20.0 n/a
DZ Bank 0.2 0.9 20.1 37.5
ING 0.1 0.7 15.0 35.0
LBBW n/a n/a 20.0 n/a
Natixis 0.2 0.8 23.0 41.0
Soc. Generale 0.9 0.2 18.0 39.0
Standard Chartered 0.1 n/a n/a n/a
Sumitomo Mitsui n/a n/a 19.0 35.0
UBS n/a n/a 25.0 42.0
Unicredit 0.2 n/a 5.0 n/a
West LB n/a 0.9 13.0 n/a
Westpac n/a n/a 10.0 n/a
–

PPI – April
%mom %yoy

Median Forecast 0.3 2.7
High forecast 0.5 3.2
Low forecast 0.0 2.3
Previous period 0.6 3.3
-
Number of responses 9 7
-
4Cast 0.4 2.7
BNP Paribas 0.4 2.7
Capital Economics 0.1 2.4
Citi 0.5 2.8
DZ Bank 0.4 3.2
LBBW 0.2 n/a
Natixis 0.0 2.3
Sumitomo Mitsui 0.2 2.4
UBS 0.3 n/a

—————————————————————–
* Median is based on above forecasts and is not intended to represent
a consensus.

The survey was conducted on Friday, May 11.

[TOPICS: MTABLE,M$GDS$,M$G$$$,M$XDS$,M$X$$$]

GDP (flash) non-farm
– Q1 – – Q1 -
%qoq %yoy %qoq

Median Forecast 0.0 0.4 -0.2
High forecast 0.2 2.2 -0.1
Low forecast -0.3 0.0 -0.5
Previous period 0.2 1.7
-
Number of responses 15 11 5
-
ABN AMRO 0.0 n/a n/a
Barclays Cap. 0.1 n/a n/a
Berenberg Bank -0.3 0.0 n/a
BNP Paribas -0.1 0.4 -0.2
Capital Economics -0.2 0.3 n/a
Citi 0.0 0.4 -0.2
Commerzbank 0.0 0.4 n/a
DZ Bank 0.1 0.6 n/a
Danske 0.1 2.2 n/a
ING -0.1 0.5 n/a
Natixis -0.1 0.4 n/a
Nomura 0.0 n/a n/a
Soc. Generale n/a n/a -0.3
UBS 0.2 0.9 -0.1
Unicredit 0.1 n/a -0.5
West LB 0.1 1.6 n/a
–

HICP – April CPI – April
%mom %yoy %mom %yoy

Median Forecast 0.2 2.5 0.2 2.2
High forecast 0.4 2.6 0.8 2.3
Low forecast 0.1 2.2 0.1 2.1
Previous period 0.9 2.6 0.8 2.3
-
Number of responses 8 8 8 10
-
Barclays Cap. 0.2 2.4 0.1 2.1
BNP Paribas 0.1 2.4 0.1 2.1
Capital Economics 0.2 2.5 n/a n/a
Citi 0.2 2.4 0.2 2.1
Commerzbank n/a n/a n/a 2.3
Danske 0.1 2.2 n/a n/a
ING n/a n/a 0.8 2.2
Natixis 0.2 2.5 0.2 2.2
Soc. Generale 0.3 2.5 0.3 2.2
UBS 0.4 2.6 0.4 2.3
Unicredit n/a n/a n/a 2.2
West LB n/a n/a 0.1 2.3

———————————————————————–
* Median is based on above forecasts and is not intended to represent
a consensus.

The survey was conducted on Friday, May 11.

[TOPICS: MTABLE,M$GDS$,M$G$$$,M$XDS$,M$X$$$]

ITALY DATA: Final April HICP rose 0.9% m/m and 3.7% y/y, down from
+3.8% y/y in March, with the y/y gain revised down from preliminary
readings published on April 30, ISTAT said. The m/m rise follows a steep
gain of 2.5% in March, when the index registered the highest m/m rise
since the January 2001 series start on the end of the seasonal discount
sales. –The main domestic index (NIC) rose 0.5% m/m and 3.3% y/y,
confirming preliminary readings and the same m/m and y/y gains reported
in March. –Core NIC Inflation was stable at +2.3% y/y, matching the
index’s March increase; while net of energy the y/y rate gained 2.2%,
also the same y/y rise registered in the previous month.

Both down around $1 this morning as Greece worries overwhelm.

Comments from  Saudi’s Oil minister Ali al-Naimi in Adelaide early today are also adding weight after he called for OPEC to bring prices down  and let  Brent crude fall to $100, as supply currently outstrips demand.

WTI and Brent crude for  June currently trade around  $94.80 and $111.20 respectively

Italy 5 year CDS spread widens 15 bps to 469 bps.

France 5 year CDS spread widens 6 bps to 212 bps.

–Adds Comments About Banks’ Readiness To Withstand Greece EMU Exit

PARIS (MNI) – Bank of France Governor Christian Noyer said Monday
he was confident in the financial health of French banks, noting that
they had held up well in 2011 during a period of “severe crisis.”

Presenting the 2011 report of France’s Prudential Supervisory
Authority, which he heads, Noyer reported that all French banks have
tier one capital superior to 9% of risk-weighted assets “and are thus
able to meet the goals set by the European Banking Authority for the end
of June.”

He said that nonetheless, “a rigorous management of the risks of
each establishment is indispensable to guarantee financial stability.”

Asked about the risk of a potential exit by Greece from the
Eurozone, Noyer noted that French banks and insurance groups had already
provisioned 75% of their exposure to Greek assets over the last year.

“I cannot imagine” that provisioning the remaining 25% of those
assets would be a problem, he said. The real problem is “instead a Greek
problem,” Noyer argued, reminding that when he had spoken a year ago
about the “horror scenario” of a Greek exit from the Eurozone, it had
been greeted with some skepticism.

Even a “catastrophic scenario” for Greece should not pose a problem
for French banking groups or insurance companies, he asserted.

–Paris bureau, +331-42-71-55-40; ssandelius@marketnews.com

[TOPICS: M$X$$$,M$F$$$,MGX$$$,M$$CR$]

From a revised 1.1% in february

• Very confident of  ”robustness” of French financial insitutions, no banks will be put in difficulty  should an “extreme scenario” occur in Greece
• All French banks will meet Basel 111  tragets by June
• Spain shouldn’t be compared to Greece and has made significant reforms

Spain issuing new 12 month letra maturing May 17 2013 and reopening 18 month letra maturing October 18 2013.

Target amount 2.0-3.0 bln euros

Results due around 08:40 GMT

Italy to tap its 3 year benchmark 2.5% March 2015 BTP

Target amount 2.5-3.5 bln euros

Also to tap off the run 4.25% March 2020 BTP, 5.0% March 2022 BTP and 5.0% March 2025 BTP

Target amount 1.0-1.75 bln euros in total 

Results due around 09:10 GMT

Germany to issue new 6 month Bubill maturing November 14

Target amount 4.0 bln euros

Results due around 09:30 GMT.

From +0.3% m/m and -2.0% y/y  ( expected +0.3% m/m)

Producer prices fell 1.8% y/y with Import prices down 3.4%

PARIS (MNI) – Bank of France Governor Christian Noyer said Monday
he was confident in the financial health of French banks, noting that
they had held up well in 2011 during a period of “severe crisis.”

Presenting the 2011 report of France’s Prudential Supervisory
Authority, which he heads, Noyer reported that all French banks have
tier one capital superior to 9% of risk-weighted assets “and are thus
able to meet the goals set by the European Banking Authority for the end
of June.”

He said that nonetheless, “a rigorous management of the risks of
each establishment is indispensable to guarantee financial stability.”

–Paris bureau, +331-42-71-55-40; ssandelius@marketnews.com

[TOPICS: M$X$$$,M$F$$$,MGX$$$,M$$CR$]

From the 128 I jotted down first thing.

Spanish/German 10 year govt bond yield spread widens to 462 bps from 449.

Italian/German 10 year govt bond yield spread widens to 410 bps from 399.

EUR/USD comatose at 1.2887.

EUR/USD sits at 1.2890, exactly where it was two and a half hours ago when I arrived.

Talk of barrier option interest 1.2875 and 1.2850  (who would have thunk it?)

Sell orders clustered up at 1.2925/35. 

Where are the trailing buy stops gathered? I hear you say. Well no concrete confirmation, but I’d hazard a guess there’ll be some parked through 1.2935.

EUR/USD: Bids 1.2870/80, barriers 1.2850, 1.2800 stops below each. Offers 1.2925/35 possible stops just above

GBP/USD: Offers 1.6080/00. Bids 1.6050/60  sell stops down through 1.6040, ahead of 1.6000 barrier

EUR/GBP:  Bids 0.8015/20 and 0.7995/00. Suggested sell stops through 0.7990. Offers 0.8030/35 better above at 0.8045/50

USD/JPY: Offers 80.10/20(exporters) buy stops through 80.40 ahead of more offers 80.50/60,  Bids from 79.80 ahead of  BOJ/ semi- official bids down at 79.50/60.

EUR/JPY:  Strong bids 102.50, sell stops through 102.40. Offers 103.50/60

AUD/USD: Bids 0.9995/05, 0.9965/75, tech support 0.9950/55., sell stops below Offers 1.0050/60

USD/CHF:  Tech support 0.9270/75 and 0.9250/55. Resistance 0.9330/35

EUR/CHF: Bids 1.2000/10 (SNB), offers 1.2015/25

NZD/USD: Tech support 0.7790. Offers 0.7825/30

AUD/JPY Tech support 79.90 and 79.70. Offers 80.35/40