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The Greek securities market sees a continuation of price increases and good turnover also in August 2001

04/09/2001 - Press Releases

Greek government bond prices climbed further in August in the electronic trading system (HDAT), in line with the favourable climate prevailing in international bond markets. At the same time, the turnover rose notwithstanding the summer holiday period, reaching EUR 22,917 million from EUR 19,211 million in July.

Greek bond prices ended higher in the range of 25-93 price basis points, with the yield curve moving lower, mainly at the short end, thus becoming slightly steeper. The stronger price gains were seen at the long end of the curve, particularly in the 15y-20y maturity area (93 price bps).

The 10-year benchmark bond (maturing 18/5/2011) closed in August at 100.79 (yielding 5.24%) from 99.86 (5.37%) in July. The average yield spread over the Bund remained stable at the same level registered in July (49 bps). However, during the last week of August the spread narrowed to 47 bps reflecting renewed foreign investors interest in the Greek bonds.

Important factors at the back of these positive developments in international bond markets are the lower inflation prospects and the expectations for further easing of monetary policy both in the USA and in the Euro-zone. The Federal Reserve and the European Central Bank reduced official interest rates by 25 bps on August 21 and on August 30 respectively.

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