ECB comments on increasing size of EFSF
A range of numbers have been mentioned on the newswires, with some suggesting an increase to EUR2-3tn but without details of what this involves it is difficult to forecast the impact. It is not clear how the EFSF would be leveraged and, furthermore, whether the figures reflect the nominal amount after over-collateralisation of guarantees or before. Anyway discussion over…
EUR11.0bn Italian T.Bill auctions
The Italian Tesoro will issue a new six-month T.Bill, BOT 3/12, for EUR8.0bn and re-open BOT 12/11 for EUR3.0bn today (results after 11:00CET). Alongside this, it will also launch a new zero-coupon bond, CTZ 9/13, for EUR3.5bn. This is the first issuance by the Republic since S&P’s downgrade of Italy’s credit rating to A/A-1 on 19 September. A positive for the auction is the T.Bill…
3m and 6m Spain T.Bills auction
The Spanish Tesoro will re-open three- and six-month Letras, SGLT 12/11 and SGLT 3/12 for a combined amount of EUR2.5-3.5bn today (results after 10:30CET). Residual cashflows from the EUR7.34bn Letras redemption on 23 September, should benefit this auction. The three- and six-month securities are currently trading at 1.59% and 2.42%, respectively, giving an indication of the likely yield…
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HSBC Global Research