Developments in the Greek government bond market-April 2002
13/05/2002 - Press Releases
International bond markets were relatively stable in April. Prices rose
marginally from the levels of the previous month, reflecting investor views that the
economic growth rate would be lower than previously expected and, therefore, monetary
policy would remain unchanged for longer than originally anticipated by financial markets.
Indeed, the European Central Bank and the Federal Reserve have left interest rates
In the Greek electronic market (HDAT) prices advanced moderately, in
line with developments in the other European bond markets, leaving the average yield
spread of the 10-year benchmark bond over Bunds unchanged at 34 basis points (bps).
More specifically, the 15-year bond maturing on 11.1.2014, recorded the
highest price gain (99 bps, from 107.00 at the end of March, the price rose to 107.99 at
the end of April), while the new 3-year bond the smallest gain (29 bps, from 100.01 to
100.30 respectively). The 10-year benchmark bond closed at 98.36 (yielding 5.47%) at the
end of April from 97.47 (yielding 5.58%) at the end of March.
The yield curve steepened, moving slightly downwards in April,
reflecting the correction in investor expectations regarding future monetary policy
changes. The 3- to 20-year yield spread widened to 129 bps at the end of April from 124
bps at the end of March.
April turnover on HDAT exceeded EUR 38 billion, marginally higher than
the previous month (EUR 37.3 billion). Investor interest focused on maturities lower than
10 years, covering 72% of the total transactions, of which 46% concerned purchases and 54%
sales. Among the individual bonds, the new 5-year bond (maturity 19.4.2007) was the most
actively traded, attracting 9.41% of the total HDAT turnover, followed by the 10-year
benchmark (maturity 18.5.2012), with 8.34% of the total. Overall, in April 7,284 orders
were executed on HDAT up from 3,584 orders (EUR 18 billion) in April last year.