Saturday May 30, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek bond yields dip as investors anticipate ratings upgrade

Greek bond yields slipped on Friday, slightly outperforming other lower-rated euro zone bonds as investors anticipated a credit ratings upgrade from Moody's later in the day.

Moody's has an extremely speculative Caa3 rating on Greece, the worst in the euro zone. It is scheduled to review the rating on Friday. Any announcement will come after the market closes.

Some market participants say an upgrade looks possible. Greece's economic outlook has improved and its held two successful debt sales this year, after its 2012 default.

Moody's one-notch upgrade of Portugal's ratings despite the problems facing its biggest bank fueled expectations of similar action for Greece.

Greek 10-year bond yields were down 2 basis points at 6.04 percent, bucking the upward trend on other lower-rated debt. Their yields were 1 to 4 bps higher on the day.

"Moody's is still a lagging the other rating agencies, so a bit of a catchup upgrade for Greece by about up to two notches is very possible," said Rainer Guntermann, a strategist at Commerzbank. "It won't come as a big shock to the market, but as always with official confirmation some accounts may feel more comfortable in adding to their positions (on Greek bonds)."

Italian and Spanish 10-year yields were up 4 bps at 2.73 and 2.55 percent respectively. Investors were cautious before a U.S. jobs report that may shed light on when the Federal Reserve will end its ultra-easy, risk-friendly monetary policy.

US non-farm payrolls, due at 1230 GMT, were forecast to show 233,000 jobs were added last month and the unemployment rate held steady at 6.1 percent.

Some traders said the market was already positioned for a strong figure and would need to see a big number - 250,000 and above - for a durable upward move in U.S. Treasury yields.

The effect of potentially higher US yields on euro zone bonds should also be tempered by Thursday's report on inflation in the region, which fell to its lowest in almost five years in July.

"If expectations for the Fed's gradual normalization in policy do indeed pan out, then there is, we feel, a strong argument to suggest that not only will core euro yields remain well bid, but that the higher-yielding peripheral market will see even greater demand," Rabobank strategists said in a note.

"Yield hunters (will) look to a corner of the rates world that is, for the time being, going to remain very much supported by an ECB that is very much on a mission." [Reuters]

ekathimerini.com , Friday August 1, 2014 (13:11)  
Greek credit contraction amounted to 2.4 pct in April
Export-oriented firms benefit from euro rate
VAT hike would put several Athens hotels at risk
ATHEX: May ends with a rise of 0.3 pct
Greece, creditors seek breakthrough as clock runs down
Greece and its lenders enter a decisive weekend of negotiations in a bid to agree on a package of cuts and reforms that would unlock another 7.2 billion euros and allow Athens to keep meetin...
Coast Guard officials linked to migrant traffickers
An investigation by the internal affairs department of the Greek Police (ELAS) has linked the leadership of the country’s Coast Guard as well as officers of the police and of the National In...
Inside News
SOCCER
Wemmer pens three-year deal with Panathinaikos
German defender Jens Wemmer has signed a three-year contract for an undisclosed sum with Panathinaikos, the Greek Super League club announced on Friday. Right-back Wemmer, 29, has been playi...
SOCCER
Panathinaikos conquers PAOK through Tavlaridis goal
A Stathis Tavlaridis goal has brought Panathinaikos to practically within one point from clinching a spot in next season’s Champions League qualifiers, as the Greens made it three out of thr...
Inside Sports
COMMENTARY
Zenobia, Barbara, Christine and the general’s daughter
ATHENS – Lovely Palmyra has fallen to the zombie horde and its people are being slaughtered as the ancient city awaits its fate. It is Friday, May 22, 2015, and from my window I see the end-...
INTERVIEW
The eurozone’s ‘ambiguous’ architecture
“That’s not something you’re supposed to say in public, right?” In his humble way, Thomas Sargent, Nobel Prize winner in Economics, tries to avoid the question posed to him by Kathimerini re...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Wemmer pens three-year deal with Panathinaikos
2. Greek credit contraction amounted to 2.4 pct in April
3. Export-oriented firms benefit from euro rate
4. VAT hike would put several Athens hotels at risk
5. ATHEX: May ends with a rise of 0.3 pct
6. Greece, creditors seek breakthrough as clock runs down
more news
Today
This Week
1. Greece creditors say no deal near as G-7 frustration vented
2. Only Greece can end its miserable 'Groundhog Day'
3. 12 Russians injured in lightning strike at ruins on Crete
4. Next Greek aid program isn’t on table yet, says Moscovici
5. Some blame EU Commission for Greek obstinacy in debt talks
6. The eurozone’s ‘ambiguous’ architecture
Today
This Week
1. Hotel contracts with a ‘Greek default clause’
2. Some 300 mln left banks on Tuesday
3. Neither Grexit nor a dual currency will solve Greece’s problems
4. No more 'quick and dirty' fixes for Greece
5. Romantic notions meet reality
6. Endless confusion and worry
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.