ECONOMY

Warm wind beneath new bond’s wings

warm-wind-beneath-new-bond-s-wings

The markets appear particularly keen on the new Greek bond issued last Tuesday, as its yield has shown a significant improvement since then, partly thanks to the support from the favorable atmosphere internationally after the Fed’s decision to be patient on its rate policy.

The yield of Greece’s new five-year bond fell on Thursday to 3.28 percent, easing 9 percent from last Tuesday’s level (3.60 percent), while its price stood at 100.81 cents on Thursday night.

The investors who bought the Greek paper are already seeing returns, unlike the losses they incurred after buying the seven-year bond issued in February 2018; the latter’s yield quickly soared over 4 percent although its original yield had stood at 3.5 percent.

The favorable climate affected other Greek bonds too, with the benchmark 10-year paper seeing its yield slide to 3.874 percent.