Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

In Historic First, Greek Debt Carries Negative Interest Rate

This is a syndicated repost courtesy of Confounded Interest . To view original, click here. Reposted with permission.

Remember when Greek debt was a joke? Not anymore! Greece just held a T-bill auction and sold E487.5 million in 91-day bills at … drumroll … -0.02%.

Liquidity moves markets!

Follow the money. Find the profits! 

greeceauctioin.png

Athens, Greece (AP) — More than a year after Greece exited its bailout programs, investors — in a historic first — have bought its short-term debt at a loss.

The country’s debt management agency said Wednesday it raised 487.5 million euros ($535 million) selling 13-week treasury bills, for which the yield was -0.02%.

That means investors will get back slightly less than they paid, following a trend in other European countries.

Greece’s last 13-week treasury bill sale, in August, carried a yield of 0.095%.
At the start of its financial crisis, in 2010, Greece was locked out of bond markets as investors feared they wouldn’t get their money back. Bondholders were in fact later forced to accept large losses on their investments.

From then till August 2018 Greece survived on international bailouts.

But it is a cautionary tale: A Beware of Greeks Central Banks like the ECB bearing gifts.

At least Greece’s GDP is growing at 1.9% YoY.

greekcrisis

The ECB president, Mario Draghi. deserves all the plaudits for saving the euro, but the “doom loop” between large banks and sovereign debt hasn’t gone away.

draghitoons

 

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.