Greece's Market, it is A-B-C
On Wednesday (December 14), Germany raised 4.2 billion euros from its 2-year bonds with an average yield of 0.29% which is 0.1% lower than its previous auction of 0.39% yield with bids exceeded offer by 1.4 times.
Just minutes later Italy has to pay a new auction record high 6.47% for its 5-year bonds to raise 3 billion euros. It is going to be a big problem for Italy in the first quarter of 2012 when Italy has to issue 62.5 billion of bonds.
The Germany's 0.29% yield indicates that there is cash out there looking for safe haven. Does it means there will be divergence between markets. Must keep this possibility at the back of my mind.
Dow dropped about 1% after 2 hours of trading. Last few session's high can be the end of wave 2, one of the possibilities that I have mentioned previously.
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