Sunday March 29, 2015 Search
Weather | Athens
14o C
09o 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)  
Fitch downgrades Greece amid bailout uncertainty
Bank accounts continue to bleed
Hania and Athens are the top picks for Easter visitors
Landlords to pay tax on unpaid rent
Disabled convicts to be freed early
A bill allowing prisoners with serious disabilities to be released early is due to be submitted to Parliament next week despite objections from some opposition parties. The would-be legislat...
Greek energy minister starts two-day visit to Russia on Monday
Energy Minister Panayiotis Lafazanis is due to meet his Russian counterpart Alexander Novak and the chief executive of energy giant Gazprom, Alexey Miller, in Moscow on Monday. Lafazaniss m...
Inside News
BASKETBALL
Greens live dangerously in Istanbul
Panathinaikos played with fire in Istanbul, but still managed to beat Galatasaray 86-84 on Friday and climb to the third sport of its group two games before the end of the Euroleague top-16....
SOCCER
Greek federation backs injured Holebas
The Greek soccer federation on Friday insisted that international defender Jose Holebas had been dropped from team training in Austria because of injury and not for any other reason. Media r...
Inside Sports
COMMENTARY
Lets change the subject
Lets talk about the weather. The cloudy skies, the rain, storms and humidity, the overall heavy atmosphere. Its better to think of that than politics and politicians, whatever cuts they ma...
EDITORIAL
Too little, too late?
Many of the measures that are rumored to comprise part of the list that the Greek government is expected to submit to the European Commission, European Central Bank and the International Mon...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Disabled convicts to be freed early
2. Greek energy minister starts two-day visit to Russia on Monday
3. Opposition tells Tsipras to get control of his party
4. Vitsentzos Kornaros passenger ferry finally on its way
5. Foreign laborer dies after falling from 3rd floor of Iraklio building
6. A 5.3 Richter quake rattles area between Crete and Kasos
more news
Today
This Week
1. Fitch downgrades Greece amid bailout uncertainty
2. Opposition tells Tsipras to get control of his party
3. Let's change the subject
4. Greek energy minister starts two-day visit to Russia on Monday
5. Too little, too late?
6. Disabled convicts to be freed early
Today
This Week
1. Next Monday is D-Day for state funds
2. PM faces Merkel amid race to detail reforms
3. Some more equal than others
4. Greece to present reforms by Monday, says gov't spokesman [Update]
5. Looking at the Chinese model
6. Greece optimistic on deal with euro area next week
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.