Orlando, FL 2/21/12 (StreetBeat) -- Stocks were mixed in Asian trade. Australia was up 0.8%, Shanghai added three quarters of a percent and the Hang Seng was up one quarter of a percent, but the Nikkei was down a quarter percent on the session. European indexes are broadly lower this morning with the Dax down about 0.8% and the Footsie off by 0.4%. US stock futures are up a slight fraction as I write.*Over the weekend China’s central bank lowered the reserve ratio requirement for its banks by 0.50%; the last cut in the reserve ratio took effect December 5, 2011. For most of the large banks in China the reserve ratio requirement will decline to 20.5% because of this move.
*The Eurogroup and Greece have agreed to a deal. The bailout package will be for EU130 billion, with conditions including an escrow account for the money and a Troika presence in Athens. They say the deal will bring Greece’s debt to GDP ratio to 120.5% by 2020. The private sector involvement (PSI) has yet to be agreed to, though the bondholders voluntary agreement would be a 53.5% haircut and a lowering of the interest rate that Greece has to pay, but they say talks may restart later this week.
*As an aside, EU Commissioner Rehn says there are no current plans to ease Portugal’s bailout conditions.
*The Fed is scheduled to sell Treasuries today that are due to mature between 12/15/12 and 5/31/13; the results of the operation will be announced just after 10:00am CST.
*The Treasury plans to sell $35 billion 2 Year Notes today; the auction results will be announced just after noon CST.
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