Wednesday September 17, 2014 Search
Weather | Athens
28o C
21o 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)  
Sports events extend season of tourism
Gov’t to ask for subsidy return
Shipping sector concentrates but still expands despite crisis
First step toward transformation of Athenian Riviera
Pensions audit draws money, finds major fraud
A review of all the pensions being issued by the Greek state which started two years ago in a bid to weed out false claims has resulted in savings of 42.2 million euros, Alternate Finance Mi...
Athens dismisses Davutoglu´s invitation to tea on Cyprus
Turkey’s new Prime Minister Ahmet Davutoglu visited the occupied part of Cyprus on Tuesday and suggested that Greek Premier Antonis Samaras should join him there for peace talks but Athens d...
Inside News
SOCCER
Mitroglou seals Olympiakos´s 3-2 triumph over Atletico
Costas Mitroglou returned to scoring after 10 long months to seal a famous victory for Olympiakos in the Champions League as the Greek champion defeated visiting Atletico Madrid 3-2 on Tuesd...
SOCCER
Olympiakos, Atletico gear up for Champions League opener
A rousing 2-1 La Liga victory at Real Madrid on Saturday may suggest otherwise, but Atletico Madrid is still rebuilding after losing several key players in the close season, coach Diego Sime...
Inside Sports
FOCUS
Democracy´s many guises and challenges
The wilting Arab Spring, conflict in Ukraine, slaughter in Iraq and Syria, citizens not trusting their governments and Europeans losing their enthusiasm for the Union – most places you look ...
COMMENTARY
Lessons not learned
One year since the assassination of rapper Pavlos Fyssas by a member of Golden Dawn in Keratsini, southwestern Athens, we now know a lot more about the activity of the neo-Nazi party’s hit s...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Mitroglou seals Olympiakos´s 3-2 triumph over Atletico
2. Sports events extend season of tourism
3. Gov’t to ask for subsidy return
4. Shipping sector concentrates but still expands despite crisis
5. First step toward transformation of Athenian Riviera
6. Pensions audit draws money, finds major fraud
more news
Today
This Week
1. Greece at bottom of social justice scale among EU28
2. Lessons not learned
3. Golden Dawn candidate found guilty of inciting racist violence
4. Promises, promises
5. Thessaloniki woman arrested for cashing in dead aunt's pension
6. PM to inaugurate new surgery wing at Evangelismos Hospital
Today
This Week
1. Greece on standby
2. A Greek God
3. Avramopoulos appointed Commissioner for Migration and Home Affairs
4. Central Athens traffic restrictions back in force on Monday
5. Pavlos Fyssas murder trial expected to start before the end of the year
6. EU bank tests may miss trillion dollar risk, study finds
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.