Prices and trading volumes rise on HDAT in the first half of the year
11/07/2001 - Press Releases
Gains of 12 to 65 price basis points were recorded on the Greek
electronic secondary securities market (HDAT) in June compared with the previous month,
coupled with a parallel downward move of the yield curve. The 10-year benchmark bond
closed at 98.59 (yielding 5.54%) in June from 97.94 (5.63%) in May, narrowing the average
spread over Bund to 46 bps from 47 bps respectively. The turnover amounted to EUR 21,127
million down from EUR 28,030 million last month.
Over the first half of the year, the Greek market succeeded in holding
on to its gains more in the shorter end of the curve than in longer-maturity bonds, which
were affected by the negative sentiment in the European markets especially during the last
two months. Yields declined by 4 bps (20y) to 40 bps (3y), resulting to a steeper yield
curve. However, the domestic market moved on a more positive ground compared with the rest
of Europe, as reflected in the considerable tightening of the average spread over the Bund
to 46 bps in June 2001 down from 63 bps in December 2000, reaching record low levels (43
bps) in May. Moreover, over 1H01 the total turnover on HDAT rose to EUR 126,623 million
(monthly average EUR 21,104m) versus EUR 29,944 million (monthly average EUR 4,991m) in
the same period last year.
In general, the positive performance of the domestic government bond
market in the first half 2001 was underpinned mainly by (a) Greece’s joining the
euro-zone that resulted in the elimination of exchange risk, (b) the consequent upgrading
of long-term credit rating to A from A- by Standard & Poor’s (March 2001) and Fitch
IBCA (June 2001) given the positive outlook of the Greek economy, (c) the Ministry of
Finance’s supplying adequate liquidity in benchmark issues, (d) looser monetary
conditions in international markets, and (e) granting Primary Dealer status to
international financial institutions not established in Greece, which participate in HDAT
directly from their offices abroad, mainly London, by remote access.