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Greece Scraps Plans To Sell 1 Year Bills On July 13, Will Just Issue 6 Months, As €2.2 Billion In Bills Mature
So the Greek debt agency, headed by a former Goldman banker, sniffed around, did some reverse inquiry, and discovered that nobody wants to be locked into its debt for more than 6 months, not even with the explicit backing of the ECB. The result: the widely fanfared Greek auction on July 13 which was supposed to indicate some return to capital markets access, and had been planned to be a combination of 6 and 12 Month Bills, will now be just 6 Months. So explain to us again what the point of the whole "confidence boosting" exercise is again?
From Reuters:
Greece will auction 1.25 billion euros ($1.58 billion) of 26-week T-bills on July 13 but will not go ahead with plans to also issue 12-month paper, the country's debt agency (PDMA) said on Friday.
A total of 2.16 billion euros of six and 12-month paper matures on July 16.
The settlement date will be July 16. Only primary dealers will be allowed to participate and no commission will be paid.
In other words Greece joins other such overindebted countries as the US in rolling longer-maturing debt into ever shorter treasuries. At this rate, quite soon the entire world will be funding itself in the overnight funding markets.
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Wonder what the bids will be like.. what kinda yield are investors expecting?
To infinity and beyond!
The ECB will monetize whatever the Bigger Idiot did not purchase at super low rates. Count on it.
only Primary bidders will be allowed to bid....and who r they???
well - the american tax payers of course.
What next? Depending on overnight rollovers, as Lehman and Northern Rock did?
If you know in advance that an auction will fail, and then you cancel the auction -- how is this different from a failed auction?
Six month money for Greece ?
Anyone wanna guess.. 5% ?
Euro starting to form a potential Reversal day already today.
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