Friday February 27, 2015 Search
Weather | Athens
11o C
6o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
European bonds rise on ECB easing bets, debt-crisis confidence

By Lukanyo Mnyanda

European government bonds rose this week as speculation the European Central Bank will expand monetary stimulus combined with optimism that the region is exiting its sovereign crisis to boost demand for its assets.

Greece’s 10-year yields fell yesterday to the lowest since the nation received its first financial bailout in May 2010. Portugal’s bonds rose as the country bought back debt. Benchmark German 10-year bunds pared gains yesterday as a report showed euro-area consumer prices rose faster this month than economists predicted, though the rate was less than half the central bank’s target. ECB policy makers are scheduled to meet on March 6.

“Clearly the market is pricing in some form of easing from the ECB, and that’s behind the move in yields lower,” said Elwin De Groot, a markets economist at Rabobank in Utrecht, the Netherlands. There’s also “a positive undertone for the euro zone as a whole.”

Greek 10-year yields fell 67 basis points, or 0.67 percentage point, this week to 6.96 percent at 5 p.m. London time yesterday, after declining to as low as 6.76 percent. The 2 percent bond due in February 2024 rose 3.905, or 39.05 euros per 1,000-euro ($1,381) face amount, to 73.85.

The rate climbed to a record 44.2 percent in March 2012.

Portugal’s 10-year bond yield slid eight basis points to 4.85 percent, the biggest weekly drop since the period ended Jan. 31. The rate fell to 4.78 percent on Feb. 27, the least since June 2010.

The Lisbon-based debt agency, known as IGCP, bought back a combined 1.32 billion euros of bonds maturing in October 2014 and October 2015 in a reverse auction on Feb. 27.

Europe is emerging from a debt crisis dating back to 2009 when Greece’s new government said the budget deficit was twice as big as the previous administration had disclosed. The selloff from Ireland to Italy accelerated, pushing up borrowing costs and threatening to break the monetary union.

Annualized euro-area consumer prices, calculated using a harmonized European Union method, rose 0.8 percent this month, matching January’s reading. That’s above the median estimate in a Bloomberg News Survey for 0.7 percent. ECB officials have a target of 2 percent.

Policy makers will leave the benchmark interest rate at a record-low 0.25 percent next week, according to the median forecast of 54 economists in a Bloomberg News survey. Eight of the analysts predict the central bank will cut the main refinancing rate by at least 10 basis points.

Germany’s 10-year bund yield dropped four basis points in the week to 1.62 percent, after falling to 1.55 percent on Feb. 27, the lowest since July 24.

Greek securities returned 17 percent this year through Feb. 27, the best performer among 15 euro-area debt markets tracked by Bloomberg World Bond Indexes. Italy’s bonds gained 3.9 percent, Spain’s 4.2 percent and Germany’s earned 2.6 percent.

[Bloomberg]

ekathimerini.com , Saturday March 1, 2014 (17:08)  
Restive Bundestag to approve Greek bailout extension
German MPs begin debate on extending Greek bailout program
Minister says he hopes that ENFIA ends
Postponing an IMF tranche ‘means default’
German lawmakers approve extension of bailout program for Greece
German lawmakers approved an extension of Greece’s loan program after Chancellor Angela Merkel’s coalition staved off dissent from bailout-weary members in its own ranks. With Merkel’s gover...
Prosecutor orders probe into claims of abuse at Amygdaleza migrant facility
A First Instance Court prosecutor on Friday ordered an investigation into claims of abuse of detainees at the immigrant detention center in Amygdaleza, northwest of Athens. The prosecutor, I...
Inside News
SOCCER
Ten-man Olympiakos couldn´t overcome Dnipro
Olympiakos drew 2-2 with Dnipro from Ukraine at home on Thursday, playing almost the entire second half with a man down, to bow out of the Europa League, despite facing an opponent which on ...
BASKETBALL
Greens lose at Maccabi but preserve head-to-head advantage
Panathinaikos suffered its third loss in eight games at the second stage of the Euroleague going down 73-70 at Maccabi Tel Aviv on Thursday, but has preserved its better head-to-head record ...
Inside Sports
COMMENTARY
A breath of opportunity
We are still living in the Greece we know: The government is struggling to explain its retreat in the face of our creditors, the opposition (including dissidents in SYRIZA) smells blood, we ...
EDITORIAL
Give the green light
Foreign investment is a crucial component of economic recovery and Greece needs to start bringing it in fast. Instead, the government, like others before it, is scaring it off in a bid to sa...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. German lawmakers approve extension of bailout program for Greece
2. Prosecutor orders probe into claims of abuse at Amygdaleza migrant facility
3. Restive Bundestag to approve Greek bailout extension
4. German MPs begin debate on extending Greek bailout program
5. Tsipras reversal draws Greek sympathy as party rumblings rise
6. Ten-man Olympiakos couldn´t overcome Dnipro
more news
Today
This Week
1. Tsipras reversal draws Greek sympathy as party rumblings rise
2. German MPs begin debate on extending Greek bailout program
3. Restive Bundestag to approve Greek bailout extension
4. Prosecutor orders probe into claims of abuse at Amygdaleza migrant facility
5. German lawmakers approve extension of bailout program for Greece
6. German MPs begin debate on extending Greek bailout program
Today
This Week
1. Greece prepares extension request for eurozone approval
2. Time for Alexis Tsipras to keep his nerve
3. Stubborn but not almighty
4. Greek bailout deal faces review by euro officials next week
5. Greece says eurozone deal won time as cash bled from banks
6. The ignorance of the West about the culture of Islam
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.