Greek Bond Auction Welcomes 4 Year Low Yields

Greece is set to return to the bond markets for the first time in four years, a key signal that its crisis-hit economy is welcomed once more by investors.

“Greece is back,” analysts at Credit Suisse proclaimed. After a grueling austerity program under the terms of its two bailouts international lenders, and possibly more importantly European Central Bank President Mario Draghi’s pledge to do “whatever it takes” to save the euro, Greece is no longer talked of as the first country likely to leave the single currency.

The Greek finance ministry confirmed in a news release on Wednesday that it would launch a five-year bond in the “near future”. It is seen auctioning around 2 billion euro ($2.78 billion) worth of debt.

The yield is expected to be around the 5.4 percent mark, a better investment return than the current 4.79 percent, as authorities want to offer a little sweetener to investors, according to CNBC sources in Athens.

Ahead of the auction, yields for 10-year Greek bonds fell to 5.951 percent on Wednesday–their first time below 6 percent in four years.

In comparison, Portuguese 10-year bonds were yielding 5.889 percent. 10-year German bunds yielded 1.583 percent and U.S. Treasurys yielded 2.7134 percent.

via CNBC

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