Tuesday December 23, 2014 Search
Weather | Athens
13o C
8o 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)  
October data show fleeing bondholders
Expired debts to the state soar to more than 72 bln euros
First four contracts to fund small firms signed by IfG and banks
Investors putting plans on hold
Gov´t seeks better result in second presidential vote as bribe claim probe shelved
With all political parties now actively preparing for the prospect of snap elections, MPs are to vote in the second ballot of a critical three-phase presidential vote at noon on Tuesday. The...
Civil servants to grade evaluation scheme
As of Monday, Greek civil servants are now able to have a say in the public sector evaluation scheme that is currently undergoing fine-tuning by the Ministry of Administrative Reform. By log...
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
He’s 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. October data show fleeing bondholders
2. Expired debts to the state soar to more than 72 bln euros
3. First four contracts to fund small firms signed by IfG and banks
4. Investors putting plans on hold
5. Gov´t seeks better result in second presidential vote as bribe claim probe shelved
6. Civil servants to grade evaluation scheme
more news
Today
This Week
1. Greek parliament vote in balance after Samaras election offer
2. Euro shaky on ECB and Greece, dollar keeps edge
3. Prosecutor gathers depositions in Independent Greeks 'bribe' probe
4. Government accuses SYRIZA and Independent Greeks of 'clear alliance'
5. Klaus Regling stresses debt sustainability through commitment to reforms
6. Draghi starts squaring QE circle in month of persuasion for ECB
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. On the edge but not gutless
5. Greek PM offers compromise solution with elections by end-2015
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.