Friday March 27, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek yields drop as Turkey eases emerging market tensions

Greek bond yields fell on Wednesday after a blockbuster move by the Turkish central bank to hike interest rates stalled an emerging market rout that has hit the eurozone's weakest member.

Ignoring opposition from Prime Minister Tayyip Erdogan, Turkey's central bank raised rates by far more than economists had forecast in a bid to lift the lira currency off record lows.

Turkey was one of the epicenters of the recent emerging market sell-off. Currencies in Argentina and Russia also hit record lows last week on worries of an economic slowdown in giant China and a gradual reduction in U.S. monetary stimulus.

This spilled over into Greece, and to a lesser extent Portugal - the lowest-rated eurozone countries, whose debt markets are heavily influenced by investors with mandates to buy high-yielding emerging market assets.

Greek yields rose sharply in recent days and the performance of Portuguese bonds was mixed. Other peripheral bond yields held broadly steady.

"Greece is closer to emerging markets,» said Jan von Gerich, chief analyst at Nordea in Helsinki.

"You don't have the developed market investor base in Greece any more. Portugal also meets these criteria, although it is changing a bit now. It is moving away from that."

Greek 10-year yields fell 14 basis points to 8.53 percent, extending a retreat from 2014 highs of 8.90 percent hit on Monday. Equivalent Portuguese yields fell 4 bps to 5.10 percent.

The bigger peripheral countries, Spain and Italy, have been largely unscathed in the past week, in a further sign that investors do not see the same risks there as at the height of the eurozone debt crisis in 2011 and 2012.

Greek and Portuguese bonds were the biggest movers in the eurozone on the day. Others moved sideways as many investors stayed sidelined before a U.S. Federal Reserve monetary policy decision later in the day.

The Fed is expected to reduce the pace of bond-buying by a further $10 billion a month.

"You would think there should be more calm today ... on the back of Turkish developments,» one trader said.

Germany will sell new 10-year bonds on Wednesday, just as yields on Bunds, the eurozone's benchmark, trade around multi-month lows as the emerging market tensions fuel flows into safe-haven assets.

"At current levels maybe investors will be a bit less interested (in Bunds),» DZ Bank rate strategist Christian Lenk said. «Whatever happens at the auction, though, I would not read too much into it. The Fed meeting ... is going to be the main market mover irrespective of how the auction goes."

Bund yields were 1 bps higher on the day at 1.69 percent, having traded just below 2 percent at the start of the year. Bund futures fell 10 ticks to 142.36.

[Reuters]

ekathimerini.com , Wednesday Jan 29, 2014 (11:14)  
Bank accounts continue to bleed
Hania and Athens are the top picks for Easter visitors
Landlords to pay tax on unpaid rent
Air arrivals grow 20 pct in Jan-Feb 2015
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
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...
SOCCER
AEK docked three points for fan violence
Greek second-division side AEK Athens on Friday was deducted three points by the Greek football federation for a pitch invasion by its fans earlier this month. The disciplinary committee of ...
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. Bank accounts continue to bleed
2. Hania and Athens are the top picks for Easter visitors
3. Landlords to pay tax on unpaid rent
4. Air arrivals grow 20 pct in Jan-Feb 2015
5. Cash injection from state debtors
6. Defense minister Kammenos sues commentator for 1 mln euros
more news
Today
This Week
1. Greek future as trade hub in limbo amid Syriza split on railways
2. Greek gov't denies finance minister Varoufakis to resign [Update]
3. Bundesbank's Weidmann says euro zone debt in 'danger zone,' opposes more aid for Greece
4. New Democracy's political council convenes to decide line opposite gov't
5. Clocks go forward one hour on Sunday
6. Berlin says has no exact information about Greek reforms
Today
This Week
1. Next Monday is D-Day for state funds
2. Total victory is unattainable
3. EU asks Greece for more reforms to speed talks on bailout
4. PM faces Merkel amid race to detail reforms
5. Some more equal than others
6. New book by ex-US diplomat delves deeper into the recesses of Greek terrorism
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.