Friday December 19, 2014 Search
Weather | Athens
17o C
10o 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)  
Workers rush to get early retirement
Piraeus Containter Terminal goes from strength to strength
Moscovici: Creditor inspections to become less frequent and ‘lighter’
Property capital gains tax halt
Tsipras admits there could be hard days ahead
SYRIZA leader Alexis Tsipras said on Friday that he is determined to implement his party’s economic program if it comes to power but admitted that it would experience a challenging period. “...
Public medical centers keeping up despite shortages
Despite having just 1,050 doctors, medical centers belonging to Greece’s public health system (PEDY) saw more than 200,000 regular and emergency patients, made over 3,500 house calls and iss...
Inside News
SOCCER
Abidal cuts short playing career at Olympiakos
Former France and Barcelona defender Eric Abidal announced his retirement from football on Friday, a day before his last match. Abidal said he will finish after playing for Olympiakos agains...
SOCCER
PAOK loss at Giannina brings Olympiakos to within a point
The bad losses that PAOK and Panathinaikos suffered on the road on Thursday allowed Olympiakos to gain significant ground on the table and come to within one point from the top after the mid...
Inside Sports
COMMENTARY
New weapons of diplomacy
Hollywood screenwriters couldn’t make it up: That Sony, one of the world’s biggest film producers, would be forced to pull a comedy about the assassination of North Korea’s dictator after a ...
EDITORIAL
Oblivious to change
The world around us is undergoing many important changes while we sit around stewing in our own juices. US President Barack Obama is actually talking with Cuba’s Raul Castro, for example, bu...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tsipras admits there could be hard days ahead
2. Public medical centers keeping up despite shortages
3. Workers rush to get early retirement
4. Piraeus Containter Terminal goes from strength to strength
5. Moscovici: Creditor inspections to become less frequent and ‘lighter’
6. Property capital gains tax halt
more news
Today
This Week
1. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
2. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
3. Greek PM Samaras confronts peril putting his Greek transformation to vote
4. Independent Greeks leader backs MP's bribery claims, threatens to release video [Update]
5. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
6. Gov't spokeswoman says bribery claims 'badly-played charade,' heralds legal action if evidence not produced
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. Europe's drama in Greece needs final act to avoid tragedy
6. High stakes
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.