Keen interest in Greek bonds expensed the EUR

Viliyana Filipova — Tue, 26 Jan 2010 10:07:39 +0000

In less than an hour after the opening of auction the sale of a 5-year Greek government bond was declared interest securities 9 billion, says Reuters. Market expectations of the Greek government was neighbor to distribute securities up within the framework of 3 to 5 billion, says Finance.news.bg. According to various sources of interest for the purchase of securities worth 16-17 billion. According to a banker involved in today’s auction, the average price achieved for this auction is for approximately 350 basis points interest rate spread. Thus the yield of 5-year Greek bonds is now at 5.97% to 2.32% return for their German equivalent (Bunds). This very successful auction and lead to a decline in interest rate spread between 10-years Greek and German bonds to 297 points after earlier today spread was 309 points to a record peak on Friday at 318 basis points. The news caused contraction of the interest spread between 10-year debt of Spain / Germany by 5 basis points to 87 points. The news helped to a strong surge in share prices of Greek banks on stock markets around 4 percent since the last weeks they were subjected to aggressive sales.
The euro has also risen since 1.4182 EUR / USD rose after the news at 1.4197 EUR / USD.

Financial Communique » Bunds

Keen interest in Greek bonds expensed the EUR