The Greek 2 yr yield is falling again and is now around 9.5%, a one month low. Greece wants to issue next week 900mm euros of 6 month bills as the Finance Ministry said they are on target with their deficit cutting plan. Also, Greek banks borrowed a touch less from the ECB in Aug than in July. With tourism season about over in Greece and the pain of austerity becoming more evident economically, the next 6 months will be a true test of whether Greece can get thru this without needing an Argentina type restructuring. The political nonsense with China’s trade surplus is evident in today’s data as the surplus shrunk more than expected due to a larger than expected jump in imports but many of their imports are inputs to eventual exports. An IPAD is a Chinese export but all China does is put together other country’s parts. The Yuan is rallying to near a new high. Canada created more jobs than expected in Aug.
