Saturday March 28, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Yield on first post-default Greek bond falls to issuance level

The yield on the first bond Greece has sold since its 2012 default dipped just below its issuance level on Thursday, as Athens rejoined a rally in peripheral debt markets after a brief period of selling pressure.

The five-year bond, which drew demand almost seven times its size a week ago, faced a tough market debut as investors used the landmark sale as an opportunity to book profits on the euro zone's best performing bonds this year.

The immediate selling pressure after one of the fastest market comebacks ever from default by a sovereign raised worries that Athens' access to private funding remained at the mercy of come-and-go hedge funds.

The dip back to just below the 4.95 percent issuance yield from levels above 5.1 percent it hit earlier this week suggested Greece might after all be able to count on a more stable investor base in the future.

A strong market performance of the bond was key to attracting investors to any future Greek bond sales.

Probably there were a couple of guys on board who expected to have a quick gain and got out ... maybe a bit too early, said Padhraic Garvey, head of investment grade debt strategy at ING in Amsterdam.

Ideally you want this bond to trade 4.75 or even 4.5 percent to build confidence. You don't want the yield to go up because it leaves a bad taste in the mouth and reduces the chances of success for other deals.

Garvey said the yield dipped in line with moves in other lower-rated eurozone bond markets.

Yields on Italian, Spanish, Portuguese and Irish bonds traded close to multi-year or even record lows on Friday as the possibility that the European Central Bank may eventually have to fight low inflation with asset purchases increasingly outmuscled any other market drivers for peripheral debt.

Greek 10-year yields last traded at 6.21 percent, having risen from four-year lows of 5.85 percent to just below 6.50 percent in the days after Thursday's bond sale.

The new five-year bond traded at 4.949 percent.

The rally in peripheral bond markets continued unabated this week and I don't see why Greece should go against the tide, said Mathias van der Jeugt, a strategist at KBC. [Reuters]

ekathimerini.com , Thursday April 17, 2014 (13:31)  
Fitch downgrades Greece amid bailout uncertainty
Bank accounts continue to bleed
Hania and Athens are the top picks for Easter visitors
Landlords to pay tax on unpaid rent
Defense minister Kammenos sues commentator for 1 mln euros
Defense Minister Panos Kammenos has sued commentator Andreas Petroulakis for 1 million euros in damages over a critical article posted on the Protagon website on March 17. In a statement pos...
Reform talks move to Brussels
The Brussels Group, technical teams from Greece and its lenders, is on Saturday due to begin discussing the details of Athens reform proposals, which were completed Friday and will determine...
Inside News
BASKETBALL
Greens live dangerously in Istanbul
Panathinaikos played with fire in Istanbul, but still managed to beat Galatasaray 86-84 on Friday and climb to the third sport of its group two games before the end of the Euroleague top-16....
SOCCER
Greek federation backs injured Holebas
The Greek soccer federation on Friday insisted that international defender Jose Holebas had been dropped from team training in Austria because of injury and not for any other reason. Media r...
Inside Sports
COMMENTARY
Time to get moving
More than two months have passed since the elections and the government has to stop running around in circles and adopt a program of specific reforms, with detailed calculations as to their ...
EDITORIAL
The same old story
One of those infamously bad practices that the political system has been accused of for years is being propagated by the new government today, as it is appointing party cadres and politician...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Fitch downgrades Greece amid bailout uncertainty
2. Greens live dangerously in Istanbul
3. Bank accounts continue to bleed
4. Hania and Athens are the top picks for Easter visitors
5. Landlords to pay tax on unpaid rent
6. Air arrivals grow 20 pct in Jan-Feb 2015
more news
Today
This Week
1. Fitch downgrades Greece amid bailout uncertainty
2. Greek future as trade hub in limbo amid Syriza split on railways
3. Greek gov't denies finance minister Varoufakis to resign [Update]
4. Bundesbank's Weidmann says euro zone debt in 'danger zone,' opposes more aid for Greece
5. New Democracy's political council convenes to decide line opposite gov't
6. Clocks go forward one hour on Sunday
Today
This Week
1. Next Monday is D-Day for state funds
2. EU asks Greece for more reforms to speed talks on bailout
3. PM faces Merkel amid race to detail reforms
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Looking at the Chinese model
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.