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.