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Thursday, January 5

5th Jan - European Meltdown Roundup


Just a quickie linkfest after today's "developments"
- MoreLiver

Quote of the Day: But all hell is breaking loose this morning in Italian financial stocks - complete with rumors of an emergency Mario Monti trip to Brussels, a massive sell-off in the euro and halted bank stocks. – The Reformed Broker

EURO CRISIS
EURUSD Dips Below 1.28 As All Hell Breaks Loose In Italian FinancialsZH

Refunding Fears Take Toll on EuropeCredit Writedowns

Euro Slumps To 15 Month Lows As BTPs Crack 7% YieldZH
Unicredit halted, Deutsche Bank down 5%, EUR collapsing, 10Y Italian well above 7%

French Auction Fails To Sell Max Projected As Bid-To-Cover PlungesZH
The auction results are in and it is not a total disaster but the bid-to-cover dropped significantly to its lowest since October 2010 and they missed their maximum target.

Meanwhile, in EuropeMarketBeat / WSJ
List of the European bad news: bank stocks, bonds, French auction, Hungary

Spain Guarantees Spanish BondsTF Market Advisors
So be very careful “buying the dip” because there is a real risk that any slide accelerates and cannot be contained by a few more worthless guarantees and promises of summit meetings because too many people will become too concerned that every financial institution and sovereign is completely cross-contaminated.

On the prospects for Valenciaalphaville / FT
On Wednesday it transpired that the Spanish region of Valencia had delayed repaying Deutsche Bank a €123m debt by as much as a week.

HUNGARY
Hungary: staring into the abyssbeyondbrics / FT

Hungarian Yields Soar, CDS Hits Record As Bill Auction FailsZH

Hungary: forint fading fastbeyondbrics / FT

Hungary Fails to Raise Planned Amount at 12-Month Bill Sale as Yields JumpBB

EMEA Weekly: Hungarian TroublesDanske Bank (pdf)