Wednesday March 4, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Rally expected in new Greek bonds when trade begins

Yields on Greece's new five-year bonds, sold in the bailed-out country's return to markets after a four-year absence, were expected to fall below the sale price when they began trading on Friday.

Banks managing the sale said the bonds had already begun trading over-the-counter at yields below the 4.95 percent at which they were sold, although market participants were reserving their verdict on the deal until prices appeared on trading screens. That is expected to take place on Friday but depends on when the bonds are released to those who bought them.

Athens sold 3 billion euros of five-year bonds on Thursday, receiving massive oversubscription for its first sale of a new bond since before its bailout in 2010.

Some brokers were marking the new five-year bonds 15 basis points below the 4.95 percent yield at which it was sold, indicating the bonds would rally once secondary market trade began. Yields fall as the price of bonds rise.

One bank managing the deal said the bonds were trading at 4.90 percent. Nevertheless, brokers said there was little evidence of follow-on interest in the five-year bonds.

David Schnautz, a credit strategist at Commerzbank, said the 20 billion euros of orders for the new bonds was not a true reflection of demand, as investors were prone to inflate their orders to make sure they received a decent allocation.

"(As an investor) you have to shoot very high to get what you actually want,» he said.

The Greek finance ministry said on Thursday a third of the bonds were allocated to hedge funds, investors notorious for having short-term trading strategies, leading some market participants to question why this was the case if demand was so high.

Demand for Greece's existing 10-year bonds was soft, with yields rising 6.5 basis points to 6.04 percent on Friday. Irish, Spanish and Italian equivalents all rose 1 bps to 2.92, 3.18 and 3.19 percent respectively.

Portuguese 10-year yields were unchanged on the day at 3.9 percent, refusing to rally even though Fitch raised the outlook on its BB+ rating to positive from negative, citing progress in it reducing its budget deficit.

Core eurozone government bonds also lagged on Friday, taking no impetus from a fall in overnight share prices and talk about the potential of asset purchases from the European Central Bank.

Bund futures fell even though stocks suffered a brutal session led by the worst single-day drop in the U.S. Nasdaq since late 2011.

They were last down 10 ticks at 143.79, having nudged over 144 on Thursday on expectations that a rate hike by the U.S. Federal Reserve might not come as soon as some had feared.

"Investors have already seen Bund futures rising to contract highs in the last session, and there is not much upside,» said Christian Lenk, a credit strategist at DZ Bank.

[Reuters]

ekathimerini.com , Friday April 11, 2014 (13:21)  
Four-star hotels more profitable than five-star units
All personal finance data to be studied
Fitch in new downgrade warning
Flambouraris: Bank boards have been told to quit
Greek-Turkish diplomacy set to resume after Ankara ´mistake´
Talks between Greek and Turkish diplomats are expected to resume soon with a focus on easing tensions in the Aegean after Ankara said it had mistakenly issued a notice to reserve a large chu...
Laws separating drug dealers from users ‘not applied’
Legal provisions distinguishing major drug dealers from users are not being properly applied, according to the Therapy Center for Dependent Individuals (KETHEA), which said recovering addict...
Inside News
SOCCER
Marinakis fines Olympiakos players
Olympiakos president Evangelos Marinakis on Monday fined the team 500,000 euros for disappointing performances and called on them to make a «sacrifice» to win trophies or leave. "Olympiakos ...
SOCCER
Olympiakos´s Karembeu confident UEFA on top of racism
Olympiakos strategic advisor Christian Karembeu expressed his confidence on Tuesday that UEFA are getting to grips with racism in soccer after suffering abuse during the recent Greek derby a...
Inside Sports
COMMENTARY
Greece and the four month window of opportunity
As the dust begins to settle after the Eurogroup agreement extending the loan facility to Greece by four months, it is a good moment to have a look at where we should go from here. Much has ...
COMMENTARY
The Greek tax drama
Numbers alone can never interpret reality, not even a strictly financial one. Besides, the art of creative accounting has a number of fans in this country, many more, for the time being, tha...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Four-star hotels more profitable than five-star units
2. All personal finance data to be studied
3. Fitch in new downgrade warning
4. Flambouraris: Bank boards have been told to quit
5. Talks with Brussels on reforms for cash
6. Greek-Turkish diplomacy set to resume after Ankara ´mistake´
more news
Today
This Week
1. The Greek tax drama
2. Varoufakis to make six reform proposals at Monday's Eurogroup
3. Draghi’s QE moves to starting line as economic outlook brightens
4. Greece approved as recipient of EBRD funding through 2020
5. Convicted Conspiracy of the Cells Fire member to face magistrate
6. Investor survey shows 38 pct chance of eurozone break-up in 12 months
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
Advertiser Link
“AMF” PROJECT FINAL CONFERENCE-REGIONAL UNIT OF THESPROTIA
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.