This page has been archived and commenting is disabled.
Greece Places €1.95 Billion In 3 Month Bills At A Record 3.65% Rate
Greece today managed to place €1.95 billion in 13 month Bills, slightly more than the €1.5 billion planned. The number is trivial as today Greece sees an outflow of €8.22 billion in bond redemptions to be promptly followed by €1.585 billion in Bill redemptions on the 23rd. What is non-trivial is the interest rate this 3 month Bill came at, which was at 3.65%, more than double the 1.67% yield when the country issued 3 month Bills last on January 19. Compare that with Germany's 3.11% rate on the 10 Year. The bid to cover on the latest auction was 4.61 due to the ridiculously high interest rate. The Greek PDMA debt chief Petros Christodoulou told Market News that he is "very pleased indeed" about the auction. We will see how pleased he is when he has to raise something more than a 6 month tenor.
»
- 2009 reads
- Printer-friendly version
- Send to friend
- advertisements -
The one place Greece and Spain can make money just got kicked by Iceland ash. Tourism
You get the feeling that it is all about to unravel and with increasing speed.
Spain was mostly unaffected by the ash cloud. They may actually benefit in the short-term because people can still fly there.
Wow, that's a crazy yield.
I suspect this is a deliberate tactic to show the Eurozone members how expensive it is for them to borrow until the loan package is approved...
according to NYT, the auction was a success;
"Greece easily sold a block of three-month bonds Tuesday, and at a lower interest rate than many forecasts."
"... demand for the bills exceeded the supply on offer by 4.6 times, showing healthy demand. While the 3.65 percent interest the government is paying is nearly a full percentage point below what the most pessimistic analysts had predicted ... "
And NYT wonders why their subscription continue to shrink ...
Default is in the air
http://www.market-talk.net/index.php/id/8613