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Thursday, March 28, 2024

Greece Places €1.95 Billion In 3 Month Bills At Fresh Record 4.05% Rate, 3.85 BTC Versus 4.61 Prior

Courtesy of Tyler Durden

Things are so back to normal in Europe that even a country living exclusively on ECB life-support can barely pull off a 3 month Bill auction. The interest on the just auctioned off €1.95 in Bills which had to be completed as else Greece will be officially bankrupt (as opposed to just make believe) with existing bills rolling and no more cash in the Treasury, was a whopping 4.05%, compared to 3.65% in the most recent April 20 auction. Yet despite this ridiculous yielld, the Bid To Cover still declined from 4.61 to 3.85. Also compare this to the 4.65% yield on the 26-Week Bills issued last week, and you get a postcard picture of financial health emanating from the beaches of the Aegean. One thing is certain: Euribor and short-term funding are completely unavailable to any Greek institution.

More from Reuters:

“Considering the circumstances, things seem to have gone quite well,” said Jens-Oliver Niklasch, bond analyst at LBBW. “With the current junk rating on its bonds, it is normal that Greece had to pay more than in the previous auction,” he said.



Greece’s borrowing cost was cheaper than the 5.0 percent the debt-laden country pays to borrow under the 110 billion euro loan that the European Union and the International Monetary Fund put in place to calm a crisis that has shaken the euro zone.



Greece earlier this month sold 1.625 billion euros of 26-week T-bills at a yield of 4.65 percent. About 90 percent of the paper was bought by Greek banks, which use Greek debt as collateral to obtain funds from the European Central Bank.

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