Euro$ interest rate futures rebounded from lows with the slightly firmer tone along the Treasury curve after the late buyers' strike
by bond vigilantes on Wednesday after more optimistic FOMC minutes.
In Europe the fear is that a similar buyers' strike
in Spain or Italy would not be a force for good but would drive the shunned government into a bailout by the EU, the ECB and the International Monetary Fund.
There is no precise threshold for Italian debt sustainability, but the real danger is that the combination of high yields and daunting redemptions early next year will trigger a buyers' strike
, meaning investors will desert Italy's auctions.
We're vulnerable to a buyers' strike
if we don't get any news.
Smaller and mid cap companies, which tend to have a much higher volatility of earnings, are normally the first to suffer from a buyers' strike
They see a financial system lacking in transparency and trust, and a complete breakdown of financial architecture with a veritable buyers' strike
in the securitized asset market (with no platform yet for standardizing the pricing of securitized assets).
That would seem to be the outcome if all of us went on a buyers' strike
Alex Scott, of Seven Investment Management, said: "I think we have got something of a buyers' strike
The buyers' strike
continues,'' said Thomas Galvin, chief investment strategist at Donaldson Lufkin & Jenrette.
Justin Urquhart Stewart at Seven Investment Management said: 'Healthcare has been the trigger but we are still in a state of a buyers' strike
It appears we are in a buyers' strike
,' said Alan Ackerman, a market strategist at brokerage Fahnestock & Co, as selling accelerated late in the session.
In the stock market there has been a buyers' strike
now for some months, which suggests a substantial build up of liquidity which will eventually move from the fixed interest market, especially as interest rates fall away ,and be put to work in equities.