The tearing up between Italy and Germany has shown the world the discord within the EU. The news www.biquge.info undoubtedly sends a clear signal to the outside world that Italy is in trouble this time.

On Tuesday and Wednesday, Italian five-year and ten-year yields continued to rise, while the price of related CDS also continued to rise, and funds from all over the world frantically dumped Italian and even Spanish government bonds, and the yield soon exceeded 7%, which is close to the level of Portugal's peak.

Although the market generally believes that the EU will not allow the sell-off of Italian government bonds to continue. But they also believe that Italy's national debt will not improve much in the short term, because the EU is unlikely to reach a bailout agreement with Italy in the short term, because the country needs much more bailout funds and the size of its domestic economy than Greece and other countries, and there are many details to be discussed.

The decline lasted for a week, and finally on Friday the yield on 10-year Treasuries stopped below 8%, just a few inches away from 8%. In other words, if there is no good news at the end of the week, it will only be a matter of a moment for the 10-year yield on Italian government bonds to break through 8% at the start of trading on Monday.

And during the week, the euro also fell by more than 5% against the dollar, falling below the 1.3 euro to 1 dollar mark, affected by the Italian market.

However, the EU did not say anything about this, only the leaders of a few small countries stood up and shouted a few times, and the core countries of Germany and France did not say anything, which greatly disappointed the market.

"When is it appropriate for you to express your position?"

More than 10 kilometers off Lamma Island, Hong Kong, Zhong Shi, wearing sunglasses, is lying on a yacht basking in the sun all day long, while paying close attention to the changes in the fishing rod. At this time, Ivana, dressed in a bikini, came over with a satellite phone the size of a brick.

The temperature has dropped a little in the past few days, but the weather is good today, Zhong Shi simply sailed out to sea, enjoyed the sea breeze and sun, and at the same time saw if he had any luck today and could catch something.

However, as soon as there was a bit of a vacation atmosphere, Ivana came over very uninterestingly, ruining Zhong Shi's interest in rest.

"Madam Prime Minister, I'm Zhongshi."

Glancing at the other party speechlessly, Zhong Shi took the phone, first reported to his home, and then asked with a hint of ridicule, "What, is there no support within the EU now?" ”

"I don't have the heart to joke with you!"

The female prime minister made a blank face and reprimanded unceremoniously, "Do you know how big the impact is now?" A week's sharp fluctuations in foreign exchange have seriously affected the import and export industry in the euro area. I'm talking to you about the trillions of euros in the economy, and you know, there are already a lot of countries that have expressed their dissatisfaction, and the pressure on my shoulders is very high. ”

Although it has only been a week, the female prime minister's statement has already made most countries in the EU unhappy. If they had not known that Germany and France would eventually intervene, they would have jumped out and made this discontent public.

"It's not up to me whether to decide what to do, it's about how much international capital goes to Europe!"

Zhong Shi didn't dare to continue joking, and after a short pause, he asked, "If you think that there is enough capital flowing into Italy or the euro market right now, then it is possible to act now." I think the data from the Prime Minister's side should be clearer than I estimated, right? ”

"This ......"

The female prime minister is naturally well aware of the amount of speculative funds flowing into Europe during this period, but whether this news needs to be revealed to Zhong Shi is undecided. But soon when she remembered that Ivana had reported that Zhong Shi had not made any moves during this time, she put her mind at ease and said frankly, "According to incomplete statistics, European banks, including the Bank of Italy, have lent a total of about 150 billion euros in bonds during this period, plus the new influx of funds in the capital market and money market, about 300 billion euros." Of course, this figure is not very accurate, because we can only count speculative money in the European market, and the American side is not clear. ”

"Are you happy with the number?"

After listening to this, Zhong Shi did not say too much surprise, in fact, these figures are the amount of money that has entered the regulatory eye, and the relevant figures in the OTC market may be more. What he wants to know is that for the market, the entry of this short fund means that there is another fund that is not much different from each other to enter the long, forming a mutual rival. What he wanted to know now was whether the EU side was satisfied with the figure.

"Isn't it a little less?"

The female prime minister seemed to be asking Zhong Shi this sentence, but it was a bit like asking herself, and after a while, she said leisurely, "Let's do this first." ”

She now values divisions in the EU more than she does in fighting speculative money.

"Well, you can declare good news this weekend!"

Since the other party said this, Zhong Shi naturally did not continue to insist, and immediately said, "The EU's QE policy should have been discussed a long time ago, right?" If that's the case, you can choose to announce it next Friday. This weekend, you can talk to the Italian leaders and then release some good news to keep the current market bears down. I think for this reason, I believe that there should be a lot of funds willing to enter the market to encircle these current bears. ”

Bell Stone's first step was to spread the news of shorting Italian and Spanish government bonds to lure some of the money into the market. And his speech in Greenwich was to tell the hedge funds that these funds will be your prey.

The praying mantis catches the cicada, and the yellow finch is behind.

"What do you mean......"

This news came as a surprise to the female prime minister, who originally thought that Zhongshi would let her announce the news of the implementation of QE in Europe, but now it seems that this is not the case.

"Our real goal is that these speculative funds, whether they are short or long, will be wiped out!"

Zhong Shi explained unhurriedly, "The previous wave of short-sellers and the follow-up people will not be in the same circle, but they are all speculative funds. I'm trying to get rid of the wolf, first let this wave of people swallow the first wave of short sellers, and then use QE to trap these deeply, so that they have to get into the trap I set for them step by step. ”

"I see, that's what happened."

Hearing this, the female prime minister already understood what Zhong Shi meant, and immediately nodded and hung up the phone.

According to Zhongshi's arrangement, at least two groups of people will suffer heavy losses in this plan, and such an outcome is naturally the most ideal for the EU.

"Look, your rod is moving!"

Ivana, who had been hiding far away, hurriedly shouted at him after seeing Zhong Shi put away the phone, "I should have caught something!" ”

Zhong Shi rushed over when he heard the sound, and found that sure enough, the fishing line was shaking violently, and he knew that there must be a catch. At that moment, he slowly shook the rod and reeled the line, and it didn't take long to feel the weight of the fishing line, he tried to pull it, and realized that with the power of the fishing line, he was afraid that he would not be able to catch this big guy, and immediately ordered Ivana: "Take the fishing net, this seems to be a big guy." ”

Ivana cooperated with the fishing net, waited on the water, and waited for the moment when Zhongshi pulled up the line and copied it without hesitation. When the prey fully surfaced, both of them were surprised.

It is a large grouper the length of an adult's arm. It seems to realize that it has lost its freedom, and is desperately struggling in the fishing nets, trying to escape from the nets.

"This time it was a big deal!"

Zhong Shi smiled and said with a pun.

……

On Saturday, European time, the German female chancellor and the Italian prime minister spoke on the phone, and at the same time, the two sides said that there was a small misunderstanding before this, but it has been resolved. At the same time, both sides also said that they maintain a high level of concern about the current abnormal volatility in the market.

The Italian Prime Minister said that the current economic situation in Italy is normal, and there is not much difference from a few months ago. As for the debt ceiling required by the EU, they are solving it by increasing measures such as reducing fiscal spending, and believe that they will be able to meet the EU's requirements in the future.

Germany, on the other hand, said that Europe's attitude towards Italy, the third largest economy in the eurozone, was once very high. If necessary, Europe will provide assistance to Italy as soon as possible. She has repeatedly stressed that there will be no room for a default in the eurozone.

At the same time, the female prime minister also hinted that in the near future Europe will issue an economic stimulus policy to stimulate the current sluggish economic situation.

Naturally, as soon as these two pieces of news were announced, they immediately caused a huge wave in the market, and those institutions that were frantically shorting Italian government bonds a few days ago felt a sense of panic that the end was coming. They know that this time they have been tricked by the dignitaries of the two countries.

And those hedge funds that have been seduced by Zhongshi have a sense of escape. Over the past week, most of them have become rivals to short Italian government bonds, and their hearts bleed as they watched the price fall day by day. If it weren't for Zhong Shi's judgment, I'm afraid that many of them would have deserted.

But now that moment has finally arrived, they have been gearing up for a long time, waiting for the market to open to give the short sellers crazy revenge.

Sure enough, affected by these two news, as soon as the market opened on Monday, European time, both Italian government bonds and the euro rose with a vengeance.

The yield on Italy's 10-year government bonds fell from nearly 8% to around 6% in a single day, a drop of two percentage points. The euro soared 3% against the dollar throughout the day, sweeping away the decline of the past week and becoming the world's most eye-catching currency.

Along with the skyrocketing of these breeds, it is a rout of the bears who have lost their armor. (To be continued.) )