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After Chickening Out Of 1 Year Bills, Greece Sells €1.625 Bn 6 Month Bills To Yield 4.65%
In staying with the once again popular trend of beating much lowered expectations (see Alcoa), Greece, which had previously decided against auctioning off 1 Year Bills for fear of lack of interest, managed to place €1.625 in 6 month bills in which local institutions purchased the bulk of the auction as foreign interest was muted. According to the PDMA who apparently still tracks the charade of ECB bailed out Greek banks recycling ECB money to then buy sovereign debt, the auction produced a yield of
4.65 percent for
26-week T-bills, up from 4.55 percent in a previous April 13
auction. The bid-cover ratio was
3.64 versus 7.67 in the previous
auction.
Elsewhere, the ECB seems to have finally figured out that with it backstopping local banks of insolvent countries, there is increasingly little need to actually monetize sovereign debt. As a result the ECB only purchased an incremental €1 billion in government bonds in the prior week. The resulting weekly Term Deposit Tender to remove the excess liquidity, saw 85 banks placing bids totaling €98.288 billion today, or a 1.6 Bid To Cover. This compares to last week's 1.5.
Lastly, when looking at European liquidity, the ECB allotted €195.7 billion to its Main Refinancing Operation to 147 bids, As a result of the operation, the eurozone saw a net drain of €33.4 billion
after
the ECB allotted €229.1 billion in its 7-day MRO last week.
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CAC and FTSE up 1.8%, US futures up a bit, too. All of this bad news seems to just roll off, doesn't it.
Talk about crap - who is launching the Euro right now?
(about to break 1.26)
Given their circumstances, doesn't 4.65% still sound kinda cheap??
And the headline news was, before deletion:
UPDATE - Greece passes T-bill sale test; euro, banks stocks rise (at Reuters)
It's time for the US bond vigilantes to strike the US debt. In 2007/2008 the 28-day bills were selling for 3.5-4.5% and now they go for a paultry .15% on average?? Who is buying this debt at these levels? No one but the FED and the bankers who got free money, or in other words, very few.
bond vigilantes the world over follow orders. Not yet for the US.
Greece lending at less than the US did when our house was sound
the farce only expands
like a supernova
Greece’s socialist background
The Greeks had two civil wars within the last century. The first one, burst out in 1916, where the supporters of participating in WW I violently imposed their view on the supporters of neutrality. But the worst civil war was the one that occurred in the years 1944-1949, just right after the end of the Nazi occupation. The communists, with unprecedented brutality created a division within the Greek society that still persists. The communists lost the war but their marginalization in the following years was taking advantage from the socialists. Since the latter took over Greece in the 80s, they dedicated themselves into hiring all kinds of leftists into government jobs, imposing their view of "social justice". Needless to say, that those people are avid supporters of statist and cannot conceive a free market environment. Source: A Short Story of a Greek Tragedy, a Euro Crisis and an Inevitable Collapse of The Monetary Unionhaha, nice typo, spilled me coffee, Durden owes me a new keyboard!
I learned to cup the cup down before reading anything on this site.
Its smart. It means in 6 months when they roll, we get more good news! Eventually they will be rolling daily at 7% annualised. And CNBC will think its bullish, every day....
I get it! When mired in debt the solution is to borrow more. What a no-brainer. Obviously the U. S. model is taking hold worldwide.
Ya know, when your boss is cheating on his taxes it makes it easier to rationalize cheating on yours. When the headlines say for years that your government is spending more than it collects, it makes it easy to over extend yourself in credit. When 2 party politics says it's OK to call anyone who disagrees with you a liar, a thief, a traitor, and racist, it becomes easy to eliminate reason from our dialogue.
When the talking heads on TV pick a deep, complex, and little-understood topic, call in a deca-box of "experts", and then allow 4 minutes for an "analysis" of the situation? What sort of resolution is garnered from the yell-fest that develops? What do we hear next? "Well, we'll have to leave it there since we're out of time." Time? Set aside an hour and have a moderator who can handle large egos. Oops. Sorry about my error. There are some shows like that but they get 1% of the viewers. It's more fun to watch folks yell at each other and take untenable positions -- now, that's entertainment! If we could just get Nancy Grace interested in economics.
Good examples for fair living, fair dealing, and fair thinking are hard to find.
As warned about earlier, DOW/SP500 remains bullish for now ...
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