Greece is to auction 1.2bln short-dated T-bills in around 45 minutes with players to be closely watching the result.

It will be the first test for the weekends Greek rescue plan and may be enough to stimulate sufficient investor demand to cover the auction. If that is the case, we could see further tightening in Greek-German bond yield spreads, which could put a floor on the euro. Conversely, a weak auction will likely be euro-negative.