Insider Economy Greek bond yields hit 12-year low on Moody's ratings boost

Greek bond yields hit 12-year low on Moody’s ratings boost

Greece’s benchmark 10-year government bond yields dropped to their lowest since 2006 on Monday after Moody’s raised its rating late last week, bolstering investor optimism towards the euro zone’s most indebted country.

Moody’s on Friday lifted Greece’s issuer ratings to B1 from B3, citing the effectiveness of the country’s reform programme.

Greece’s 10-year yield dropped to 3.622 percent in early trade on Monday, the lowest since January 2006.

A recently issued five-year bond‘s yield fell to its lowest in its two-week trading history at 2.79 percent.

“The move from Moody’s is reflection that the reforms are already bearing fruit in the shape of some fiscal improvement with the primary surplus,” said DZ Bank strategist Daniel Lenz.

“But I think what is also important is that Greece is showing it has access to markets, with the successful five-year (bond sale) and now rumours of a new 10-year as well,” he said.

The ratings upgrade fuelled speculation that Greece would offer a new 10-year bond syndication this week, with Commerzbank analysts also saying they expect a deal this week.

Yields usually rise ahead of new supply, but for Greece, evidence of market access is considered positive, given the country’s massive debt-to-GDP ratio — 176 percent.

Broader euro zone government bond yields were flat to slightly lower, though still near recent two-week highs on signs of a possible U.S.-China trade deal.

World equity markets were might be signed around a summit on March 27.

Germany’s 10-year yield, the benchmark for the euro zone, was marginally lower at 0.18 percent, down from a one-month high of 0.208 percent on Friday.


Top Stories

3 children per 10 sq metres under hygiene protocol for kindergartens

  There can be a maximum of three children per 10 square metres in classrooms when kindergartens reopen on June 9 and children must bring...

UK leads fall in global trust in government COVID responses – poll

People across almost all the world's leading rich economies have turned more sceptical about their governments' handling of the coronavirus pandemic with confidence slumping...

Latest on the worldwide spread of the coronavirus

Last updated: 04/06/2020 08:41 The World Health Organization (WHO) will resume its trial of hydroxychloroquine for potential use against the coronavirus, its chief said, after...

Fines, not charges for church attendance during lockdown

  No charges will be brought against members of congregations who attended church services during the lockdown in contravention of the decree, Phileleftheros reported on...

A mural of George Floyd in Stevenson Square

Artist Akse works on a mural of George Floyd who died in police custody in Minneapolis, Stevenson Square, Manchester, Britain, June 3, 2020.


Poulles (Υoung kolokassi)

Either you thrash the coriander seeds in a mortar, without making them into dust, or you gradually crush them in a blender. Remove the edges...

Pork cooked in wine

Crush the coriander seeds in a pestle and mortar or pulse-blend in a blender, taking care not to over-grind. Put the meat in bowl (not...

Lefkaritikos tavas – O ‘protinos’

Wash and dry the meat and rice separately. In a ‘tava’ (oven proof deep clay pot) first put a layer of five-six pieces of meat...

Local cuisine: An introduction

Rich in fresh ingredients and tasty herbs, offers the very best of Mediterranean culinary delights. Head out to a tavern and feast on a...