Saturday Jul 26, 2014 Search
Weather | Athens
32o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bond market set for Greek ratings lift as debt sale nears

The relentless rally in Greek bonds seen over the past two years could be given a further leg up on Friday, with ratings agency Moody's widely expected to lift at least the rating outlook of the euro zone's weakest link.

Some market participants expect as much as a two notch upgrade from Moody's, which would take its rating back to parity with the other main agencies and accelerate its planned return to debt markets.

"There is talk among investors that the country could return to market as early as next week if Moody's do upgrade it," said a trader at a market maker in Greek government bonds.

Greece hired a group of banks to manage the sale of a 2 billion euro five-year bond on Thursday, Thomson Reuters market service IFR reported, with sources suggesting the bonds will be issued sometime in April.

The country, which has been locked out of capital markets since it accepted a bailout in 2010, is rated Caa3 by Moody's, nine notches below investment grade. Standard and Poor's and Fitch rank Greece six notches below investment grade at B+.

"The expected rating upgrade, and the subsequent return of Greece, will give Greek yields another boost," said Christian Lenk, fixed income strategist at DZ Bank.

Greek 10-year yields were unchanged on the day at 6.13 percent.

DZ's Lenk said Greek yields could push through 6 percent, returning to levels not seen since January 2010. Two bailout packages worth 240 billion euros have been agreed since.

Transatlantic divergence

Other peripheral euro zone countries are also reveling in borrowing costs that have reached multi-year lows, with markets heartened by Thursday's promise from the European Central Bank that it now unanimously agreed that outright money-printing - or quantitative easing - was an option.

Spanish and Italian 10-year yields were 4 basis points lower on the day at 3.19 percent and 3.22 percent, respectively, while Irish and Portuguese equivalents were 5 bps lower at 2.97 percent and 3.93 percent.

In further evidence of the divergent inflation prospects and central bank policy between the US and Europe, Spanish five-year yields dropped below US Treasuries for the first time since 2007 on Thursday.

Spanish five-year yields were at 1.78 percent, 2 bps below the US equivalent at 1.80 percent.

That gap could widen further if the United States posts strong employment growth via its non-farm payrolls data on Friday.

"We could see a minor rate rise is Europe (after the jobs data) but there will be further widening of the transatlantic spread because both markets and economies are in very different states," said Lenk at DZ Bank.

[Reuters]

ekathimerini.com , Friday April 4, 2014 (12:48)  
Trade deficit grows 9.5 pct in Jan-May
Number of 5-star hotel rooms rises 31.4 percent in four years
Greeks get slightly less downbeat
Banks reluctant to issue credit
MP steps in to get power back on at invalids home
An MP had to intervene to get the electricity supply restored to the home of a man who requires a machine to help him breathe just days after a woman on life support died in Hania, Crete, as...
Civil servants who changed contracts to undergo checks
State inspectors are to begin checking the circumstances under which thousands of people working in the public sector had their fixed-term contracts switched to open-ended deals in the years...
Inside News
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. I l...
SOCCER
Olympiakos downs AC Milan 3-0 in friendly
Greek champion Olympiakos defeated Italy's AC Milan 3-0 late on Thursday in a friendly match that launched the International Champions Cup in Canada and the US. The result, with goals from A...
Inside Sports
TALK
What lessons can we draw from antiquity?
Our theme is limits. And we are gathered here at this limit of Europe, close the to sea: the limitless, the boundless. And we face all sorts of limits. There are the limits of knowledge fa...
COMMENTARY
Forty years of shortsighted party policies
It is 40 years since the restoration of democracy, and the two main parties which were established in 1974 and determined the countrys fate since then are unable to act their age. For decad...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Trade deficit grows 9.5 pct in Jan-May
2. Number of 5-star hotel rooms rises 31.4 percent in four years
3. Greeks get slightly less downbeat
4. Banks reluctant to issue credit
5. MP steps in to get power back on at invalids home
6. Civil servants who changed contracts to undergo checks
more news
Today
This Week
1. Greek coast guard picks up 77 migrants off Myconos
2. Draghi safety net becoming blindfold as bonds soar
3. Godfather, 35, shot at Karditsa christening dies
4. Aegean Airlines resumes flights to Tel Aviv
5. Thousands of dead fish surface in Lake Pamvotis
6. Police report points to less crime in 2014
Today
This Week
1. Greece seen in third bailout as bonds not enough, economists say
2. Climber dies in Mount Olympus fall
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Unequal after death
5. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
6. Quadriplegic woman on life support 'dies due to unpaid power bills'
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.