A short entry today. Yesterday, the Greeks successfully raised E5billion with a yield of 5.9% . Coverage wasn't great with only E7 billion bids received but it was encouraging. The term was for 7 years which is a bit of an odd maturity, even in the U.S. where demand for all sorts of gap maturities is far greater than it is in Greece (I suspect), but it is a start. The yield gapped out to 6.35% by this afternoon but with 20-odd billion to go in the next couple of months (or more--I have to check) I would think that 50 b.p here or there is not the most important thing. Or at least that's what I used to tell dodgy borrowers when I was trying to convince them to take the money and run. I doubt if times have changed that much.
Speaking of yield, it is interesting how little talk there has been of our own interest rate profile over the past month as the 10-year has moved closer and closer to 4.00% Of course I would say, "What's a few basis points when you have to raise $2 trillion," but then again, a few basis points at our level of debt tends to add up and before you know it you're talkin' real money as Sen. Dirkson once said. Man, would I be short the long end of the curve if I had any money to get short and shorter still as the details of this financial catastrophe known as health reform become more widely known. There I go, getting political again. Talk to you tomorrow.
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