In response to our highlight of soaring Greek 10-year bond yields, a trader told us we were missing a far more important part of the story:
Everyone is so focused on the 10 yr yield and if or if not they are going to get this 10 yr bond deal done for Greece. One of the most important aspects of the US financial system collapse and most any other major finical collapse in the world according to any economic doctorate you speak to (Rogoff, Reinhardt, etc.etc.) short term rates are the TELLING signs.
Greece 6 month Bill is up 313 bps to 6.60 Yield. You take that 6 month bill rate and add this news that is going around: “Greek banks are being hit by a wave of redemptions as rich citizens and companies look to move their money to big global banks or offshore as the country’s debt crisis rages, the Telegraph newspaper reported on its website.
Markets are losing faith in even the short-term prospects for Greece, not just the longer-term creditworthiness of the nation. And here it is:
Business Insider Emails & Alerts
Site highlights each day to your inbox.