Demand Is Strong for Greek Debt - WSJ.com
Greece saw strong demand for its latest debt auction but was forced to pay a hefty interest rate while yields on longer-term bonds jumped again, a sign that investors remain wary about Athens' solvency.
Greece's debt agency sold €780 million ($1.061 billion) apiece of the six- and 12-month Treasury bills at yields of 4.55% and 4.85%, respectively.
Analysts say the auction wasn't necessarily a good gauge of foreign demand. Greek banks tend to be heavy bidders at such auctions, while foreign investors prefer longer-term maturities, and the 10-year bond yield climbed Tuesday to 6.86%.
Finance ministries agreed on bailout terms Sunday, with the euro zone providing up to €30 billion in loans at about 5% interest, which is well below what Greece must pay in the markets. The International Monetary Fund could chip in as much as €15 billion more at even lower rates.




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