Thursday Jan 29, 2015 Search
Weather | Athens
14o C
9o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek 10-year yields rise to 5.95 pct ahead of possible new issue

By Emelia Sithole-Matarise

Italian and Spanish bond yields nudged higher on Monday ahead of a slew of debt sales this week, but underlying sentiment in the lower-rated euro zone bonds remained firm thanks to a dovish European Central Bank.

Adding to traders' relative caution was a newspaper report that said global banking regulators were considering ending the long-standing treatment of all government bonds as potentially risk-free.

The euro zone bond market, which rallied sharply last week after the ECB said it could print money to support the region's economy, paused for breath ahead of debt sales due in Italy, Ireland, Germany, Austria, the Netherlands and possibly Greece.

The sales are widely expected to go smoothly, with demand especially strong for peripheral bonds which still offer relatively higher yields than core debt.

"There's a little more supply this week from European treasuries so many investors may try to take the opportunity before the summer break to buy into primary auctions to get higher yields offered by the periphery,» said Felix Hermann, a market strategist at DZ Bank.

"I doubt we will see a lot of (price) concession. We also have lots of coupon payments coming up and the talk from ECB officials this week should support the environment for euro zone govvies (government bonds) in general."

Italian yields rose as much as 3 basis points to 2.73 percent before retreating to trade a touch up at 2.70 percent.

The Italian Treasury will give details later on Monday on the maturities and size of bonds it plans to sell later in the week. Spanish equivalents were 2 bps higher on the day at 2.69 percent.

GREEK OFFER

Some in the market expect Greece to sell a new three-year bond this week, its first after it successfully returned to debt markets in April with a five-year bond issue. Athens told Reuters last month it planned to issue a seven- or three-year bond before August. Greek 10-year yields were 1.5 bps higher at 5.95 percent.

The rest of the euro zone bond market held broadly steady following last week's sharp rally after the ECB said banks could borrow as much as 1 trillion euros in cheap four-year loans that will be offered in September and December.

Some market participants were also mulling the potential impact of a Wall Street Journal report saying global banking regulators were considering new measures that would make it harder for banks to understate the riskiness of their assets. This included potentially ending the long-standing treatment of all government bonds as risk-free, the newspaper said, citing people familiar with the discussions.

Given that domestic banks are major buyers of government bonds in many countries, especially in the weaker economies, big changes to the risk weighting of the bonds could jolt the market, analysts said.

Nordea strategists said that, while such a major shift was unlikely, «even more modest changes would put some upside pressure on the bond yields of the riskier countries».

"Given where peripheral valuations are, with some people maybe thinking they are beginning to look stretched, these sorts of headlines do not help,» one trader said.

[Reuters]

ekathimerini.com , Monday Jul 7, 2014 (14:09)  
Reinstatement of minimum monthly salary at 751 euros
Full speed backward for Greece’s energy policy
Bank deposits have lost over 7 bln this month
Deal with Cosco to be reviewed after OLP tender is called off
New Democracy looks to pick up the pieces
New Democracy’s executive committee is due to meet on Thursday as the conservative party begins the process of trying to heal the wounds from Sunday’s election defeat. Conservative leader An...
New Greek FM to address dispute with EU on Russian sanctions
Greece’s new Foreign Minister Nikos Kotzias will attempt on Thursday to clear up a dispute between Athens and the European Council when EU diplomats discuss whether to step up sanctions agai...
Inside News
SOCCER
PAOK strikes deal with Portugal´s Ricardo Costa
PAOK announced on Tuesday its agreement with Portuguese international defender Ricardo Costa. The Thessaloniki club added that the player is expected on Wednesday to undergo a medical test a...
BASKETBALL
Basket League favorites survive challenges on the road
PAOK consolidated its position in the top three of the Basket League with a triumph at AGO Rethymnou on Saturday, while Olympiakos and Panathinaikos emerged victorious from their tough away ...
Inside Sports
COMMENTARY
Greece puts mind over money
Whenever a public intellectual runs for or is appointed to high public office, people who think and/or write for a living tend to get very excited. At some point after that, they usually get...
COMMENTARY
EU must accept that Greek debt relief is inevitable
A prediction for you: Greece and the European Union will split the difference in their quarrel over debt relief. What's uncertain is how their respective governments will justify the new dea...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Reinstatement of minimum monthly salary at 751 euros
2. Full speed backward for Greece’s energy policy
3. Bank deposits have lost over 7 bln this month
4. Deal with Cosco to be reviewed after OLP tender is called off
5. Greek markets crash on gov’t pledges
6. New Democracy looks to pick up the pieces
more news
Today
This Week
1. Athens may veto further EU sanctions against Russia
2. Greek PM Tsipras pushes on with radical change, markets tumble [Update]
3. EU must accept that Greek debt relief is inevitable
4. Greece's looming clash in Europe starts with sanctions on Russia
5. EU toughens stance after Tsipras names cabinet
6. A turn toward responsibility
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greeks fork out nearly 5 pct of their incomes on telecom services
5. Greek Elections 2015: The day after | LIVE
6. Poll shows SYRIZA leading ND by 4 pct
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.