Insider Business Euro zone bond yields tick up ahead of key data, Greek bond...

Euro zone bond yields tick up ahead of key data, Greek bond sale

Greek bonds were firm on Tuesday after the country opened books on its first 10-year government bond sale in a decade, while elsewhere other euro zone bond yields edged higher ahead of key data and after China revised downwards its growth expectations.

Greece announced the 10-year syndicated bond sale on Monday, cashing in on a rally that followed Moody’s upgrade of the country by two-notches to B1 on Friday.

Leads BNP Paribas, Citi, Credit Suisse, Goldman Sachs, HSBC and JP Morgan announced price guidance in the 4.125 percent area.

Greek 10-year government bond yields have fallen by around 75 basis points since January, touching their lowest level since 2006 on Monday, allowing the Greek Treasury to lock in funding at attractive levels.

Mizuho rate strategists say fair value for the new deal is around 3.81 percent but expect final pricing to offer around a 20 basis point premium to this level.

Austria also plans to sell a combined 1.5 billion euros of February 2029 and February 2047 paper.

Elsewhere, government bond yields in the bloc were around a basis point higher ahead of key data releases in Europe and the U.S. and after China revised down its GDP growth target to 6.0-6.5 percent versus a 2018 goal of around 6.5 percent.

The Italian services PMI is expected to fall further amid slowing domestic demand, adding to a weak reading of the manufacturing PMI last week.

Spain’s services sector slowed slightly in February but activity beat expectations as new orders rebounded, a survey showed on Tuesday. Spanish 10-year government bond yields were largely unchanged at 1.187 percent..

Istat will also release the final estimate of Italian GDP for the fourth quarter of 2018, which is not expected to change the reading that the country’s economy was in technical recession in the second half of last year.

In the U.S., ISM non-manufacturing data will offer a read across to Friday’s non-farm payrolls data and is expected to show an improvement on January’s data which came during the U.S. government shutdown.

“ISM is expected to rebound, with the reason it fell [in January] attributed to sentiment at the time,” said Peter Chatwell, rates strategist at Mizuho. “There has been a rebound in other soft data, which should also be reflected.”

German 10-year government bonds, the benchmark for the region, rose one basis point in early trade to 0.169 percent .


Top Stories

178 new cases, out of 9.884 tests announced on Wednesday

The Health Ministry announced 178 new Coronavirus cases out of 9,884 PCR and rapid antigen tests on Wednesday, 20 January, taking confirmed infections to...

Where to get antigen rapid tests on Thursday

The Health Ministry announced the following antigen rapid test sites for Thursday, 21 January 2021: LIMASSOL Parking place Sklavenitis supermarket, Germasogia 08:30-16:30 Parking place Lidl supermarket, Limassol...

Expert says too early to assess epidemiological situation

Head of the Scientific Advisory Committee on the coronavirus, Dr Constantinos Tsioutis, told CNA that it is too early to safely assess the evolution...

Inauguration of Joe Biden as the 46th President of the United States

Lady Gaga sings the National Anthem during the inauguration of Joe Biden as the 46th President of the United States on the West Front...

Building collapses in central Madrid explosion, several injured

One building collapsed in a central Madrid explosion, a Reuters reporter saw, with smoke coming out of the building and rescue workers evacuating elderly...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...