February 3, 2023

Athens News

News in English from Greece

Greek bond yields top 3%

With a yield of 10-year bonds above 3%, a new issue of government bonds, with a re-issue of 7-year bonds, is likely to take place tomorrow.

The list of proposals, by all indications, should appear tomorrow morning, and the entire process is expected to be completed within a few hours. However, bond prices fell today, indicating that the yield on 10-year bonds has exceeded 3%. The yield on the 7-year bond was 2.47%.

The reissuance of 7-year bonds (with contractors BNP Paribas, BofA Securities, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE and JP Morgan) is the state’s second entry into the securities markets since the beginning of the year. This was preceded by the issuance of 10-year bonds, through which the state raised 3 billion euros at an interest rate of 1.83%, and the number of offers received from investors exceeded 15 billion euros.

The Bank of Greece Electronic Trading System (HDAT) experienced heavy trading activity with transactions of €242 million, of which €130 million were purchase orders. The 10-year benchmark bond yielded 3.08% compared to 0.79% on the corresponding German bond, resulting in a margin of 2.29%.

The euro fell slightly on the foreign exchange market as it traded at $1.0653 earlier in the day, from $1.076 when the market opened.

The indicative price of the euro/dollar exchange rate, announced by the European Central Bank, was 1.0674 US dollars.

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