The Greek government will enter the markets tomorrow by reissuing 10-year bonds seeking to raise 200 million euros. As announced by the Public Debt Management Agency on Wednesday, November 15, an auction will be held for the reissue of Greek government bonds, with a fixed interest rate of 4.25 per cent, maturing on June 15 2033, in dematerialised form.
The purpose of the reissue is to satisfy investment demand and – at the same time – to facilitate the operation of the secondary bond market. The amount to be auctioned will be up to EUR 200 million and the settlement date will be Wednesday, November 22 2023.The auction will be open only to Base Dealers (B.D.) with the submission, through the electronic trading system, of up to 5 competitive bids each – which must be submitted by noon (pm) local time – on November 15 2023.
However, sentiment in the secondary market is optimistic, with the 10-year bond yield falling below 4 per cent following the favourable report of the International Monetary Fund.The IMF points out – among other things – that growth-friendly fiscal consolidation can further enhance the sustainability of public debt. Thus, despite the high level of Public Debt, continued fiscal convergence – with the primary surplus rising to 2.1 per cent of GDP in 2024 from a projected 1.1 per cent in 2023 – would help reduce the debt-to-GDP ratio while limiting additional inflation pressures.
In the secondary bond market today – and more specifically in the Electronic Trading System (ETS) of the Bank of Greece – transactions amounting to €207 million were recorded, of which €64 million were related to buy orders. The yield on the Greek 10-year bond was 3.98 per cent, up from 3.95 per cent yesterday, compared to 2.59 per cent for the corresponding German security, resulting in a spread of 1.39 per cent.
