Saturday May 23, 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)  
Car sales drop a gear on VAT rate uncertainty
Bulk of loan requests comes from food service
Greek yields climb after Riga summit
Georgios Michelis said to be next HFSF chief
Deal no closer following PMs meetings in Riga
Athens believes that Greece could still clinch an agreement with its lenders but probably at the start of June, rather than by the end of this month as it had previously hoped, following the...
Greece to back NATO-led campaign against ISIS, Kammenos says
Greece will join the United States and other NATO members in efforts to defeat militants of Islamic State (ISIS), an issue which is expected to be discussed in the summit of the transatlanti...
Inside News
SOCCER
Greece escapes soccer suspension, FIFA happy with changes
FIFA says it is satisfied with changes made to sporting law in Greece, and has dropped a threat to suspend the country from international competition. In a letter to the government dated May...
SOCCER
Four-goal Panathinaikos thrashes Asteras away
Panathinaikos thrashed Asteras at Tripoli to gain an early advantage in the race for a spot in next seasons Champions League qualifiers, as the Super League play-offs got under way on Wedne...
Inside Sports
EDITORIAL
Consensus is key
The education bill that has been put forward by Greeces leftist-led government has to be the subject of extensive public consultation. Even more importantly, it needs to be approved in Parl...
COMMENTARY
The other inequality: how the state spends our money
Growing inequality between rich and poor across the world has rightly become the focus of much investigation and analysis. The Organization for Economic Cooperation and Development underline...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Deal no closer following PMs meetings in Riga
2. Greece to back NATO-led campaign against ISIS, Kammenos says
3. SYRIZA, ND waver over agreement
4. Nearly 800 irregular migrants detained as EU mulls refugee relocation plan
5. Car sales drop a gear on VAT rate uncertainty
6. Bulk of loan requests comes from food service
more news
Today
This Week
1. Merkel stamps out brief optimism on Greece after Tsipras talks
2. Lessons from Israels tech miracle
3. Tsipras to meet Juncker on second day of Riga summit
4. Civil aviation staff to hold walkout on holiday weekend
5. Banks will be asked to revise their restructuring plans
6. EOPYY struggles for funding, sees overdue debt rise
Today
This Week
1. The Greek-German breakthrough that didnt come
2. Conspiracy madness
3. Greece came close to not paying IMF
4. National self-awareness put to the test
5. Albanian demarche raises concerns about possible territorial claims over Greece
6. Greek endgame nears for Tsipras as bank collateral hits buffers
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.