Debt sale coming up

Greece will auction 1.5 billion euros in six-month treasury bills next week, testing market sentiment as long-term borrowing rates reached new record highs. The Public Debt Management Agency said yesterday the sale – the first since mid-November – will take place on January 11. The sale comes in the same week as the first bond auctions of 2011 in Portugal, Spain and Italy, and peripheral eurozone bond spreads have been pushed wider in anticipation of the supply glut. Greece’s 10-year yield spread over German bunds remains stuck near peak levels, at around 988 basis points yesterday.