Friday March 6, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Unfavorable markets lead to Greek bond sale missing estimates

By Lukanyo Mnyanda & David Goodman

Greece raised 1.5 billion euros ($2.04 billion) in a debt sale that fell short of analyst estimates on size and yield as it took place amid a selloff in higher-yielding bonds across the euro area.

In its second offering in three months, the country that sparked Europe’s sovereign debt crisis sold three-year notes via banks at an average yield of 3.5 percent. That’s a higher borrowing cost than forecasts earlier this week of about 3 percent from HSBC Holdings Plc and Royal Bank of Scotland Group Plc. RBS had also estimated the size of the sale would reach 3 billion euros.

Portugal’s bonds led a selloff in securities from the region’s so-called periphery nations this week on instability in that nation’s banks. Greece’s transaction went ahead “despite very unfavorable conditions in international markets and especially in periphery, today and yesterday,” the Finance Ministry in Athens said in a statement.

“It points at a fragile position of the issuer in terms of being able to secure a reliable market access,” said Gianluca Ziglio, executive director of fixed-income research at Sunrise Brokers LLP in London. Greece had to “accept halving its initial issuance target despite being a syndicated offer, and also had to accept a higher guidance than was initially thought,” he said.

Greece had planned to sell as much as 3 billion euros of debt, a government official said last week, asking not to be named because the details hadn’t been announced at the time.

Greek five-year notes fell for a third day, pushing up the yield by 12 basis points, or 0.12 percentage point, to 4.34 percent at 2:46 p.m. London time. That’s still down from 4.95 percent when the securities were issued in April in the nation’s return to international debt markets.

Today’s sale took place as concern that the financial system in the euro area remains vulnerable after the five-year sovereign debt crisis threatens a rally in government bonds this year. Portugal’s 10-year yield climbed above 4 percent today for the first time since May 21. That’s still down from a euro-era record of more than 18 percent set in January 2012.

Greek securities returned 66 percent in the 12 months through yesterday, the most among sovereign-debt markets tracked by the Bloomberg World Bond Indexes. Portuguese bonds earned 24 percent amid a region-wide rally fueled by the European Central Bank’s pledge to backstop the euro area.

Investors “once again expressed confidence in Greek economy,” Greece’s finance ministry said. The plan to “build a full yield curve” of bonds of varying maturities will continue, the ministry said.

[Bloomberg]

ekathimerini.com , Thursday Jul 10, 2014 (17:43)  
Cash-strapped Greece repays first part of IMF loan due in March
Greece must repay loans in full, bailout fund head says
Jobless rate starts picking up again
Election lifted consumers’ mood
Greek reforms list cites tackling evasion, fiscal savings, source says
Greece has promised to fight tax evasion and generate fiscal savings as part of an updated set of reforms sent to euro zone partners ahead of a meeting of finance ministers from the bloc on ...
Greece sends new letter with details on reforms, sources in Brussels say
Greek Finance Minister Yanis Varoufakis on Friday sent a new letter to the Eurogroup essentially fleshing out the six reform proposals that Greece is expected to present at Monday's meeting ...
Inside News
BASKETBALL
Barcelona beats Panathinaikos once more
For the fourth time this season Panathinaikos failed to beat Barcelona, this time in Athens, losing 81-77 on Thursday and denting its chances for a privileged top-two finish in its Euroleagu...
SOCCER
Iraklis, Apollon and Xanthi in Cup semis
The prospect of a second-division team reaching the Greek Cup final has grown considerably after two out of the three teams that made the semifinals this week come from the Football League. ...
Inside Sports
COMMENTARY
PISA, Schengen, mediocrity and isolation
Greece’s most serious problem is not the economic and political crisis, though it did contribute greatly to it. At the root of our evil lies our great isolation, not only from our partners i...
COMMENTARY
Balancing the Greek budget: The ancient Athenian perspective
Is democracy good for balancing a budget? For many today the answer is a resonating no. This answer is easy to understand. In the birthplace of democracy, Greece, the state’s budget is a mes...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek reforms list cites tackling evasion, fiscal savings, source says
2. Greece sends new letter with details on reforms, sources in Brussels say
3. Cash-strapped Greece repays first part of IMF loan due in March
4. Greek and German bruisers limber up for ´rumble in the eurozone´
5. Greece must repay loans in full, bailout fund head says
6. BoG chief Stournaras briefs PM Tsipras on ECB´s decisions on Greece [Update]
more news
Today
This Week
1. BoG chief Stournaras briefs PM Tsipras on ECB's decisions on Greece [Update]
2. Greece must repay loans in full, bailout fund head says
3. Greek and German bruisers limber up for 'rumble in the eurozone'
4. Cash-strapped Greece repays first part of IMF loan due in March
5. Greece sends new letter with details on reforms, sources in Brussels say
6. Greek reforms list cites tackling evasion, fiscal savings, source says
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. The Greek tax drama
3. SYRIZA feeling the pain
4. Varoufakis to make six reform proposals at Monday's Eurogroup
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.