Greece Sells €3 Billion In Bonds In 2x Oversubscribed Offering

Tyler Durden's picture

Just over three years after Greece "triumphantly returned" to capital markets in April 2014, when it issued €3 billion in 5 year bonds at a yield of 4.95%, and a cash coupon of 4.75% - an offering which was 8x oversubcribed - and which crashed and nearly defaulted one year later when only the 3rd Greek bailout prevented the country from going bankrupt, only to get taken out at 102, moments ago Greece once again returned to the bond market, if far less triumphantly, by selling another €3 billion in 5 year paper which however was "only" 2x oversubscribed, with indications from Bloomberg that there was only €6.5 billion in demand for the "high yielding" paper. And speaking of yield, it came in lower than 3 years ago, pricing at 4.625% with a coupon of 4.375%.

For those who did not get their desired allottment in today's offering, fear not there will be more:


And while we await the final term sheet, here is an interesting observation from EuroWeek's Owen Sanderson, who explains why, in the more surprising aspect of today's bond sale, Greece had to spend €78 million for the previously discussed tender of the existing 5 year bond auction.


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Bam_Man's picture

It's called "front-running the ECB".

Government needs you to pay taxes's picture

ECB-backed bonds at extra high yields!  What could go wrong???

Creepy_Azz_Crackaah's picture

Morons, buying this worthless shit. Just don't force the loses onto working people with your money printing.

Greece needs to "unfuck" itself. Stop blaming other people/entities for the results of your socialist, FREE $HIT, policies.

Haus-Targaryen's picture

Well, if this is like the last couple times "Greece successfully enters debt markets" the whole places goes to shit in less than six months. 

Mountainview's picture

Every 15 years Greece enters the bondmarket successfully to go bankrupt 10 years later and negotiate rescheduling for 5 years. Human memory is short.

GunnerySgtHartman's picture

Heh, more proof of the old axiom: "speculators never die."

Déjà view's picture

Up...up...away...guided by comforting warmth of sushine...carry these boundless wings of wax...

silverer's picture

Hey, what's the worry? The interest is guaranteed. It's the principal you don't get back. lol

zjxn06's picture

"I'll take "Burning money" for $500 Alex."

jamesmmu's picture

WOW! This is madness and ridiclous. Another reason why this market should crash.

silverer's picture

4.625%, huh? A lot of people can't read the writing on the wall, only bang their heads against it.

Bay of Pigs's picture

Full Retard on steroids?

Give Me Some Truth's picture

Meanwhile in America, investors quickly and enthusiastically gobble up bonds sold by the State of Illinois.

Max Damage's picture

So who's pension fund bought this utter shite then?

SloMoe's picture

Not sure whether to by these, or the Argentinean 100 year...

Stormtrooper's picture

I'll sell you some 1000 year bonds at 1%.  How many do you want.  I'll get'em printed.  Cash only please.

Five Star's picture

Per capita tax revenues are off literally 36%, but sure, why not lend them more money at 4%

Panic Mode's picture

Go to eBay and you can buy all sort of 19th century bond certificates. What does this tell you??

bluskyes's picture

We're all going to be millionaires soon?

PontifexMaximus's picture

I do not want to ever ever hear anything about debt blablabla restructuring of greece, unless I get a  50% kickback on the hooker's and caterer's pay during all these useless meetings 

E. Phil Chew's picture

.....and investors were dumb enough to grab.   It's kinda like Wimpy saying, "I'll gladly pay you Tuesday for a hambuger today."

What part of 'Greece is basically insolvent and on a tightening-accelerating death-spiral' do these investors not underst..... oh..... right..... takeover..... one-worlders..... nudge.

Never mind.

Nothing to see here.

youngman's picture

Just need a few more immigrants to make it all good...but what a stupid thing to buy these bonds...really????

Paul Morphy's picture

Icarus wants his wings back.

shizzledizzle's picture

They need to take one from the Argentina playbook. Century Bonds! 

bluskyes's picture

They set the interest rate too high.

Rick Cerone's picture

More debt and taxes wont save you.

It'll turn you into a little Nazi's bitch. 

Making Merica Great Again's picture



Frankly Speaking's picture

Who really is buying this crap? Who lends money to a bankrupt nation at 4.5%? Will put my bets on the ECB and member banks who are simply printing money to keep the facade going. All is well until it isn't.

Fundies's picture

The slowest of slomo train wrecks.