ECONOMY

Rumors of impending bond issue

The remarkable decline in the interest rate of Greek bonds, particularly that of the recently issued five-year paper that has even dropped below 4 percent, is feeding rumors among investors that Athens is contemplating a new bond.

Market professionals note that the yield of the five-year paper, at 3.97 percent from an original 4.95 percent, is particularly small compared to other Greek bonds, which they interpret as “investors’ desire for a new issue.”

There are said to be three scenarios being mulled at the Finance Ministry: The first concerns a three-year issue to draw 3 billion euros at the low rate of 3 percent, the second is a seven-year bond to increase the Greek debt supply in the market, and the third is 18-month treasury bills with a particularly low interest rate, which would also reflect investors’ disposition toward Greece for the 18 months after its issue.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.