July 16, 2010
13-week bills next for Greece on July 20
There's no time to waste: after their success with the 26-week bonds on July 13, Papendreou is moving fast to put up $2 billion USD worth of 13-week securities next week. The July 13th bond sale went at 5% interest. Bloomberg Businessweek has more:
" “It’s pretty likely that they will be able to raise more than the size they announced, just like what happened this week,” said Christoph Rieger, co-head of fixed-income strategy at Commerzbank AG in Frankfurt. “Perhaps it’s their strategy to announce a small amount, and pleasantly surprise the market once they manage to raise more.”
Next week’s sale will be the second since the country accepted a EU-led bailout in May. The 26-week auction signaled that confidence among banks in Greece, which purchased 80 percent of the bills sold, is growing after Prime Minister George Papandreou’s government cut wages, postponed retirements and raised taxes to trim the euro-region’s second-highest budget deficit and restore investor confidence.
The debt agency sold the 26-week bills at a yield of 4.65 percent. About 4.5 billion euros of short-term securities come due from July 10 to July 23 and the rollover isn’t fully funded by the 110 billion-euro lifeline received in May to avoid default, according to an International Monetary Fund document."
Greece's Golden Visa program
