April 13 (Bloomberg) -- Demand for Greece’s debt may recover as the government sells 1.2 billion euros ($1.6 billion) of Treasury bills in its first offering since winning an aid package from the European Union.
Greece will auction 26- and 52-week bills today as it seeks to fund the EU’s biggest budget deficit. Euro-region finance ministers and the International Monetary Fund offered the country as much as 45 billion euros in loans two days ago. The nation’s bonds jumped yesterday as the lifeline boosted confidence the government will honor its debt payments.
“The rescue package means the default risk over the next 12 months is now close to zero,” said Kornelius Purps, a fixed- income strategist in Munich at UniCredit SpA, one of 22 financial institutions that deal directly with Greece’s debt agency. “This wasn’t the case last week. I can imagine that demand will be closer to the stronger levels we saw last year. I wouldn’t be surprised if Greece raises much more than initially planned.”Read more
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