Markets see conditions for 10-year bond


Greek bond yields posted a fresh decline on Monday, driven by domestic developments and the generally favorable climate for sovereign notes in the eurozone, therefore paving the way for the next move by the Public Debt Management Agency (PDMA).

The benchmark 10-year bond saw its yield slide another five basis points to 3.78 percent on Monday, while the new five-year paper, issued in late January at a rate of 3.60 percent, was trading at 3.14 percent on Monday.

Analysts note that Greek bonds were boosted on Monday by the cancellation of the Titlos swap by National Bank with a nominal value of 5.5 billion euros in exchange for state bonds maturing in 2023, 2025, and 2026 with a total nominal value of 3.3 billion euros.

This way the PDMA achieved a reduction of the national debt by 724 million euros, i.e. the difference between the non-amortized value of Titlos and the nominal value of the three bonds.

These developments, market sources say, create the framework for the first 10-year bond issue since March 2010.