Monday December 22, 2014 Search
Weather | Athens
13o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece's imminent bond return set to provide next peripheral fillip

By John Geddie

Greece's imminent return to bond markets just two years after a massive debt restructuring, expected as early as Wednesday, lifted investor appetite for riskier credits which has stalled over the last couple of days.

Yields on peripheral eurozone sovereign bonds dipped but remain slightly higher on the week after European Central Bank policymakers warned that any move to print money to raise ultra-low inflation was still a long-way off.

"The fact that Greece is returning is good news for the periphery in general, one trader said.

Greece has hired a group of banks to manage the sale of a 2 billion euro five-year bond, Thomson Reuters markets service IFR reported last Thursday.

While Athens tried to play down the immediacy of the deal earlier this week, fervent demand from foreign investors for its treasury billion Tuesday and media reports that the deal could come as early as Wednesday, has bolstered speculation the deal is imminent.

Greece's ability to issue has been propelled by investors' hunt for high returns in an environment of low official rates. Its 10-year yields have fallen from over 30 percent after it restructured 130 billion euros in debt in 2012, to just above 6 percent - a level not seen since it accepted the first tranche of a 240 billion euro bailout in 2010.

"One year ago it was unthinkable Greece could come to the market and issue bonds. Now it is a reality, said Alessandro Giansanti, senior rates strategist at ING.

Bankers close to the Greek deal said on Tuesday that the path had been cleared for Athens after the European Financial Stability Facility - which counts eurozone member states as its stakeholders - issued 5 billion euros of seven-year bond.

"The EFSF has always coordinated its issuance with eurozone member states, said one head of origination at a Greek primary dealer. They may be borrowing at different levels but this is an etiquette that is observed."

Portuguese debt, in particular, is expected to benefit from a successful Greek return. Portugal is looking to sell its first bonds by auction this quarter, providing further evidence that it can exit is bailout programme unassisted.

Greek 10-year yields dipped 4 bps to 6.13 percent in early trading, while Portuguese equivalents fell 1.9 bps to 3.93 percent, respectively.

ECB President Mario Draghi opened the door to central bank asset purchases last week. However, a raft of ECB policymakers have since stressed they were only preparing for what economists call quantitative easing, or QE, and would only move if they thought the inflation outlook had deteriorated significantly.

European Central Bank Governing Council member Christian Noyer said late on Tuesday that he did not see risk of deflation in the eurozone, while Bundesbank chief Jens Weidmann said any new measures to tackle low inflation would bring risks that must be carefully assessed.

German Bund futures dropped 15 ticks to 143.54, while cash 10-year Bund yields dipped 2 bp to 1.58 percent.

With little European data scheduled, market participants will be keeping a close eye on minutes from the Federal Reserve's March meeting due on Wednesday afternoon.

Traders are eager to see whether the central bank discussed rate hikes which would likely put pressure on Treasury yields, and to a lesser extent, core markets in the euro zone.

U.S. Treasuries have been well supported after Friday's jobs data lagged lofty expectations, prompting markets to re-evaluate their views on when the Fed would begin raising rates.

[Reuters]

ekathimerini.com , Wednesday April 9, 2014 (12:25)  
Spanish bond gains push yield to record low as Greek debt rises
Low costs, yield hunt to propel long-term euro zone bond sales in 2015
Greek current account deficit shrinks in October
Energy shares and Greek rebound lift European equities
Bomb hoax at SYRIZA HQ in central Athens
The threat of a bomb being planted at SYRIZAs headquarters in central Athens proved to be a hoax. The partys offices on Koumoundourou Square were evacuated at lunchtime on Monday after a c...
DIMAR not poised to break apart, insists spokesman
Democratic Lefts parliamentary spokesman Nikos Tsoukalis has rejected a report claiming that his party may be on the point of breaking apart. This report is so far from the truth that I do...
Inside News
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
INTERVIEW
Klaus Regling stresses debt sustainability through commitment to reforms
BRUSSELS The man who is responsible for the loans to Greece as managing director of the European Stability Mechanism (ESM/EFSF), Klaus Regling, is the only high-ranking European official w...
INTERVIEW
Crisis of confidence will come back again and again, says Thomas Piketty
Hes treated like a rock star wherever he goes to lecture. His book Capital in the 21st Century, a study on income and wealth inequality from the 18th century to the present, recently tran...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Bomb hoax at SYRIZA HQ in central Athens
2. DIMAR not poised to break apart, insists spokesman
3. SYRIZA offices in Athens evacuated after bomb threat
4. Spanish bond gains push yield to record low as Greek debt rises
5. Low costs, yield hunt to propel long-term euro zone bond sales in 2015
6. Greek parliament vote in balance after Samaras election offer
more news
Today
This Week
1. Prosecutor gathers depositions in Independent Greeks 'bribe' probe
2. Euro shaky on ECB and Greece, dollar keeps edge
3. Government accuses SYRIZA and Independent Greeks of 'clear alliance'
4. Draghi starts squaring QE circle in month of persuasion for ECB
5. Greek parliament vote in balance after Samaras election offer
6. Parliament's ethics committee to look into independent MPs' comments
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. High stakes
3. Europe's drama in Greece needs final act to avoid tragedy
4. A friendly yet firm message from Pierre Moscovici
5. On the edge but not gutless
6. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.