ECONOMY

5-bln-euro bond above German yield

LONDON (Reuters) – Greece refined price guidance on its new 5-billion-euro ($6.41 billion) five-year government bond yesterday, with a banking source saying the deal was expected to yield 12 to 13 basis points over German government debt. The deal, which should be priced today, was initially expected to yield between 11.5 and 13.5 basis points over the German Bobl note maturing on April 9, 2010, the head of Greece’s debt management agency told Reuters on Monday. CSFB, Emporiki Bank, Nomura, Piraeus Bank and UBM are managing the sale of the new benchmark bond. Greece, rated A by Standard & Poor’s and Fitch Ratings and A1 by Moody’s Investors Service, hopes to raise 15.5 billion euros in the second quarter of this year, about 40 percent of its overall borrowing requirement for 2005.