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Record turnover on HDAT in November

04/12/2001 - Press Releases

Turnover reached new record highs of EUR 57 bn (GRD 19.317 bn) on the electronic secondary securities market in November, underlining the high reputation of HDAT in the intensely competitive EU environment. Greek government bond prices declined following the developments abroad.

The daily average turnover almost doubled in November at EUR 2.58 bn from EUR 1.34 bn in the previous month and EUR 1 bn during the year to October. Of the total orders executed on HDAT in November, the shares of “buy” and “sell” orders were approximately equal. 49.36% concerned “buy” orders and 50.64% “sell” orders. Investor interest was stronger for longer bonds (with remaining time to maturity over 5 years). Of the total “buy” orders, those for bonds of this category reached 59.54%.

The high price volatility and the correction observed in global bond markets after the October rally also affected the domestic market. Since the beginning of November, the favourable developments in Afganistan for the international coalition against terrorism boosted investor expectations for restoration of stability in world markets. On the other hand, the release of contradicting economic data rendered more difficult the assessment of the future developments in the Euro-zone and, especially, in the U.S. economy and reinforced the expectations of further monetary easing. In the domestic market, the significant increase of bond prices in October was followed by a sharp liquidation in November. During the last few days of the month, however, the market recovered part of the losses. The decline was in the range of 28 and 142 price basis points (bps), mainly the 5y (111 bps) and the 7y bonds (142 bps). The 10-year benchmark bond closed at 102.63 (yielding 4.95%) in November from 103.59 (4.87%) in the previous month.

The yield curve shifted becoming slightly flatter as the 3y bond yield rose to 3.94% in November from 3.40% in October and the 20y to 5.43% from 5.41% respectively. The 10y spread over Bunds continued the steady decline since last summer, narrowing to 43 bps from 45 bps in October. It should be mentioned that, in many instances, the spread reached 41 bps for the first time.

The solid investor interest in the Greek government bonds was also reflected in the good reception of the latest 10y bond auction where the cover ratio was 6.78 compared to 3.84 at the previous auction of the same issue in September.

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