Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek yields dip as S&P says might raise ratings

Greek bond yields dipped on Friday after Standard & Poor's said it could raise Greece's credit ratings if GDP growth were to pick up more substantially, after keeping them deep in junk territory with a stable outlook.

Standard & Poor's said it believed the country's economy was gradually rebalancing, adding the stable outlook assumed no further distressed exchange of Greek debt.

The positive comments are the latest upbeat news for the debt-laden southern European country, which this week clinched a deal for the release of further aid funds after negotiations with the European Union and the International Monetary Fund.

A sharp fall in its government bond yields near four-year lows, as investors hunt for higher returns in euro zone debt as the region's debt crisis eases, has also prompted Greece to consider selling its first bond since it was bailed out in 2010.

"These relatively constructive comments out of S&P today plus the fact that they will get their latest loan tranche as well and the talk they might test the market with a shorter-dated bond issue in the first half is all positive for Greece," said ICAP strategsit Philip Tyson.

"There's definitely a window for Greek yields to further contract and spreads to narrow...but there's still some fundamental issues for Greece if growth disappoints," he said.

Greek 10-year yields were last 3 basis points lower at 6.96 percent, tentatively resuming a downward move that pushed the yields near four-year lows early this week.

Greek bonds still offer higher yields than the rest of the euro zone but their current pre-bailout levels suggest improved confidence that the worst of the region's sovereign debt crisis is over.

Risks remain

The improved market tone is leading some Greek officials to consider issuing bonds earlier than the second half of the year that Athens had initially flagged, with a source telling Reuters it could issue a five-year bond in the next few months.

Many of its primary dealers say the earlier Greece returns to bond markets, the better, as demand from yield-hungry investors ramps up, and a deal could even come before European elections in May.

Risks still remain. Despite their sharp rally, 10-year Greek yields are still above their longer-dated counterparts. A yield curve that inverts like this usually points to debt investors fearing they might not be repaid in full.

Greece's high debt level of about 175 percent of the country's gross domestic product remained unsustainable and if the economic recovery stalls and deflation takes hold, investor sentiment could quickly sour, analysts said.

"A new issue in the market would be positive for the country and for spreads, showing strength, RBS strategists said in a note. "However, it will take longer to solve Greece's problems in the real economy, and debt relief discussions will be key, which are currently planned for August."

Other euro zone bond yields were also slightly lower as the market stabilized after the previous day's sharp sell-off after Federal Reserve Chair Janet Yellen signaled the central bank might raise U.S. interest rates sooner than initially thought.

[Reuters]

ekathimerini.com , Friday March 21, 2014 (12:59)  
Tourism targets rise ever higher
Horse race betting hurdle removed for OPAP
Revised GDP data confirm that Greek growth is near
Measures to reduce unemployment
Education minister calls for probe into predecessors reform plan
Following reports that a plan to reform the tertiary education sector launched in the spring of 2013 failed to lead to millions of euros in savings, Education Minister Andreas Loverdos on Mo...
Anti-racism bill goes back to Parliament
An anti-racism bill, foreseeing stiffer penalties for individuals and political parties that engage in racism or incite racist violence, is to be debated in Parliament on Tuesday following m...
Inside News
BASKETBALL
Greek hoopsters go top of their group in World Cup
Greece has qualified to the second round of the FIBA World Cup after going top of its group of six through a third win in as many group games in Spain. On Monday it beat Puerto Rico 90-79 in...
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
Inside Sports
ANALYSIS
EUs three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Polands prime minister, faces three big challenges: the sta...
COMMENTARY
A great president
I fully understand the countrys need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Greek hoopsters go top of their group in World Cup
2. Tourism targets rise ever higher
3. Horse race betting hurdle removed for OPAP
4. Revised GDP data confirm that Greek growth is near
5. Measures to reduce unemployment
6. Peachy export data despite Russian embargo
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Erdogan visits Turkish-occupied Cyprus
4. Greek economy shrinks at slowest pace since late 2008
5. Dont feed the zombies
6. Greek officials meet to fine tune strategy for Paris talks with troika
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.