Greek bonds to take 5% haircut at ECB

The ECB announces that Greek bonds will get 95 cents on the euro when put up as collateral at the ECB. That is a result of Moody’s downgrading Greek debt to junk yesterday.

Under old ECB rules, Greek debt would now be ineligible for use as collateral at all, so a 5% haircut is chump change…

EUR/USD is consolidating at 1.2250 after a combination of central bank and real money demand…