Saturday, December 17, 2011

All euro, all the time

Noting that the FT Alphaville opinion that the success of this week's Spanish bond auction can be exclusively and entirely attributed to the collateral policies of the ECB has now osmotically converted itself into gospel truth via information suppression utilities like Google...

The Tesoro posts their statistics with a couple of months of lag, so it will be February before we can know what the retail contribution to this week's debt auctions was. In the meantime, with numbers current through October, there is already some indication that our domestic political, non-end of the euro, take might have merit.

The chart shows individual holdings of government debt at month end since January 2010. Readers should note that the PSOE government - knowing full well that polls showed them being slaughtered - announced, on July 29th, that elections would be advanced from March 2012 to November. The certain prospect of the removal of Zapatero and his party's replacement by the PP (not to mention lush yields) brought the local money out as soon as the homies got back from the beach.

Readers with good memories might remind us to update this in the future.

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