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’If you tolerate this, then your T-bills will be next
In the sound and fury of eurozone sovereign debt activity on Tuesday, we forgot to take note of Belgium’s auction of short-term T-bills.
It was not good.
It was really not very good:
Yields on both the three-month and 12-month paper sold reached three-year highs.
The cash killing BNY Mellon
The search for a safe haven just got even trickier. BNY Mellon announced on Thursday that it is to charge a fee on all those cash deposits piling in as investors flee risk assets. Presenting, then, the latest cash killers — flashes courtesy of Reuters:
Contingency planning in six charts
Morgan Stanley’s US interest rate strategists have included a lovely set of charts in their latest research note that portray the moves in short-term markets due to the debt ceiling impasse. The strategists stress that the price moves don’t reflect liquidity shortages but are “the functional equivalent of a tightening,
Honey, I broke the repo market
If you’re a money market fund manager, you’ll already be aware (plus possibly extremely concerned about) that general collateral rates are approaching zero. If you’re not, then read on.
As a reminder,
Mmm, Irish yield stew
Take on more bank bailout risk than you planned for.
Get kicked around by a rating agency.
Then kick back at the rating agency.
Watch spreads on your bonds widen to new records.
Pass Go and collect a bumper bid-to-cover ratio on your next bill issue.
‘A lively debate followed,’ or, fun with Treasuries
Tip of the hat to Alea for this — an unusually interesting record of minutes for the latest meeting of the Treasury Borrowing Advisory Committee, released in tandem with the Quarterly Refunding Statement.
Greece, more Daedalus than Icarus, for now
The Greek Treasury knew better than to fly too close to the sun.
Tuesday’s rollover of T-bills by the Hellenic Republic went pretty well, in and of itself.
While maturities on offer were shortened to six months from 12 in a last-minute fit of prudence,
What’s with the T-bills, Greece?
Greece may be a month into its bailout — but its government revealed on Monday that it will still go to the market to honour some obligations. As Reuters reports:
“Greece will go to the markets mid-July,
Clutching at eurocrats
Well, where does Greece go from here?
Search us, in so far as we were able to decipher official European views following Thursday’s spike in Athens’ debt costs.
As for where Greece is going on Friday? It seems that’s into one-year and six-month T-bills,
China’s two (terrible) T-bill auctions
Got a spare 5bn yuan?
If you do you can buy the rest of China’s Friday T-bill auctions because . . . no one else wanted them.
Here are the details via the Bloomberg:
In words, that means China failed to find enough buyers for the whole of the two auctions.
Money for nothing
Dire Straits wisely observed back in 1985 that it’s nice — but possibly derisible — to have people give you money for nothing.
Nevertheless, it happens to be the way to do it if you’re the US Treasury (H/T Clusterstock).
Treasuries bubble danger
As noted, the flight to safety is taking on epic proportions. With that in mind our thoughts are going to what may happen next, or specifically, the implications of a Treasuries bubble. Here’s one view from Monument Securities (our emphasis):
The Fed’s very own bonds?
The Wall Street Journal reports Wednesday that the Fed is considering issuing its own debt for the first time. Why? Wee, because it would give the central bank additional flexibility as it tries to stabilise rocky financial markets,