Saturday February 28, 2015 Search
Weather | Athens
11o C
6o 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)  
Greece seeks negotiations on ECB bond repayment
Piraeus plans are coming in next few weeks
Slowdown in tourism bookings from Germany
Economy grew by 1.3 pct in Q4 of last year
Tsipras unveils coalition´s first bills, due next week
Prime Minister Alexis Tsipras set out on Friday his government’s immediate legislative plans, while at the same time insisting he would continue to pursue debt relief and refuse to sign a th...
Berlin clears extension as lenders ramp up pressure
There was strong backing in the German Parliament on Friday for the extension of Greece’s loan agreement but reports suggested that the country’s eurozone partners would continue to keep up ...
Inside News
BASKETBALL
Spanoulis leads Olympiakos to win over Malaga
A good second half was enough for Olympiakos to get the better of Unicaja Malaga (77-72) and score its seventh win in eight games at the second group stage of the Euroleague on Friday. Playi...
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 ...
Inside Sports
COMMENTARY
A unionist agenda
Maybe Greece will not experience a credit event, “because it is in no one’s interest,” as Minister of State for Coordinating Government Operations Alekos Flambouraris recently assured. Maybe...
EDITORIAL
The beguiling limelight
Too much media exposure is never a good thing and there is no shortage of newcomers in politics who are beguiled by the limelight. What usually comes after this thrall of publicity is the in...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greece seeks negotiations on ECB bond repayment
2. Spanoulis leads Olympiakos to win over Malaga
3. Piraeus plans are coming in next few weeks
4. Slowdown in tourism bookings from Germany
5. Economy grew by 1.3 pct in Q4 of last year
6. Gov’t plans tax on foreign-based funds
more news
Today
This Week
1. A unionist agenda
2. Greece seeks negotiations on ECB bond repayment
3. Tsipras reversal draws Greek sympathy as party rumblings rise
4. Gov't official: bill reinstating ERT, rehiring staff to go to Parlt on March 5
5. German lawmakers approve extension of bailout program for Greece
6. German MPs begin debate on extending Greek bailout program
Today
This Week
1. Time for Alexis Tsipras to keep his nerve
2. Greek bailout deal faces review by euro officials next week
3. Greece says eurozone deal won time as cash bled from banks
4. The ignorance of the West about the culture of Islam
5. Spain said to lead push to hold Greece to terms as Podemos grows
6. A fierce battle looms
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.