Nevertheless, athens also seems to be benefiting from the european central bank’s (ECB) pledge to do all it can to preserve the euro zone. Meanwhile, the euro rescue fund EFSF and belgium continue to get fresh money at unusually lucrative conditions.
Both the EFSF and belgium again made money on short-term borrowing, official figures showed tuesday. The EFSF borrowed almost two billion euros on tuesday with six-month debt instruments. Investors once again paid a premium: the yield of minus 0.0238 percent was once again in negative territory, which is referred to as a negative interest rate. Demand was more than twice as high as supply. Belgium raised a total of 3.1 billion euros on the market with two debt issues over three and twelve months. The yield of the three-month paper was once again negative at minus 0.01 percent.
Greece, which is heavily indebted and in dire economic straits, is also able to obtain fresh money somewhat more favorably. However, athens still has to offer much higher interest rates for short-term funds than creditworthy countries like germany. According to the national debt agency PDMA on tuesday, greece paid a yield of 4.24 percent for 13-week debt instruments. This is 0.07 percentage points less than in a previous auction. In the secondary markets, where outstanding government bonds are traded, yields on greek securities have recently been sharply lower.