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
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.