Notes From Underground By Yra HARRIS

: The Palindrome speaks out of both sides of his mouth-right to left and left to right


By Yra HARRIS

As we cautioned on Thursday, we were bothered by the EURO’s failure to make a new low against the DOLLAR even as the yield on Greek debt rose to 12-year highs. Friday saw a strong rallly in the EURO currency against the DOLLAR and most cross rates. During the weekend we got confirmation that the Europeans had agreed to a “real” support package for the Greek government. The amount is €30 billion ($41 billion) in a 3-year fixed rate 5% loan, which is substantially below the rate that 2-year Greek debt traded at last week. The 2-year note in Greece yielded up to 7.45%, so the bailout helps to curtail the effects of what we called the Negative Feedback Loop problem that we detailed in Thursday’s post and what we have written about ad nauseam.

The EURO has opened up very strong in Monday’s trading in Asia, which is largely due to the huge amount of short EURO positions. While the news may buy some time for Greece–plus, Monday’s IMF meeting might sweeten the package.....
http://yrah53.wordpress.com/2010/04/11/notes-from-underground-the-palindrome-speaks-out-of-both-sides-of-his-mouth-right-to-left-and-left-to-right/