Pedantry alert!

Italy had to pay record rates in a €10bn bond sale,

Hmm, those were 6 monthers that they sold.

So, if we adopt the terminology of the US markets, these were not bonds, they were bills (bills under 1 year, bonds over what is it, 5 or 10 years, notes inbetween?).

So the question we pedants want to know is, do we actually use the same terminology in the euro markets as in the US?

Are these bills or bonds?

4 comments on “Pedantry alert!

  1. It was €8bn in 6-month bills and €2bn in 2-year in zero coupon bonds. A little sloppy journalism, perhaps?

  2. As a fan of Real Bills Doctrine, I would say they’re bonds. Bills are backed by goods which will reach the final consumer within 90 days.

  3. Richard Allan:

    I think you’ve got a correct working definition of “bill,” whether or not one subscribes to the “Real Bills Doctrine” (which I do not, though I think very highly of its originator’s acumen).

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