20 April 2010

Greece: successful 13w T-Bills auction

Greece sold EUR 1.95 billion 13-week Treasury bills today yielding 3.65 percent, more than twice the level of the previous sale in January (1.67%). The country still needs to EUR 10 + billion by end of May to finance maturing bonds and the deficit. This seems to confirm my reasoning: investors are ready to finance Greece short term for a good yield. I doubt they will finance Greece long term, hence the importance of the May deadline.
The yield on Greece’s 10-year bond reached 7.82 percent today, the highest since before the start of the euro, and more than twice comparable German debt.



Bloomberg: Greek 3-month bill yield doubles on default concern