Unabated the interest in Greek bonds in February on HDAT
05/03/2001 - Press Releases
February saw continued strong interest in Greek government bonds from
both domestic and foreign investors. The total volume of transactions in the electronic
secondary securities market (HDAT) was almost four times as high as in the same month last
year (EUR 15.17 bn or GRD 5,169 bn from GRD 1,334 bn), although lower than January (EUR
20.28 bn or GRD 6,909 bn).
At the end of February, bond prices were higher, particularly in the
long end of the curve with gains of 41-90 basis points (bps). The 20-year bond recorded
the strongest gains (from 107.64 on 31.1.2001 to 108.54 on 28.2.2001) and the highest
volume of transactions during the month (EUR 3.01 bn). Overall, the market moved upward
despite the relatively high volatility during the month.
The yield curve moved lower with a reduction of 5 bps in the 10-year
benchmark bond yield. The same occurred also in the other European markets and, therefore,
the spread between the Greek and the German 10-year bond yields remained almost unchanged
at the level seen in January (56 bps in February and 55 bps in January)
A positive development for Greek government bonds was their
introduction for trading on the EuroMTS, the European electronic secondary securities
market, from 31/1/2001.
The Greek bond market outlook remains positive, despite the strong
gains recorded over the past months, as the favourable international economic environment
with expectations for interest rates cuts by the FED and the ECB provides a solid support
for the global bond market.