Re: nincs cím

The Euro stormed back higher again today after an auction of Irish bonds went off without any apparent hitches. Some of the Euro weakness in recent session seemed centered on rumors and facts surrounding Ireland's attempts to shore up its finances. These auctions are not at all an expression of the free market since the primary dealers in these auctions know that they can swoop in and buy the debt with the implicit backing of the ECB, which is an active backer of all sovereign debt in the EuroZone, so it's a bit surprising that the market is not seeing through this charade. The far less robust bid to cover ratio for the longer term 8-year bonds, however, does suggest that banks are a bit cautious about projecting the ECB's willingness to back debt too far into the future.