Bonds: The margin of Greek bonds is expanding

The margin of Greek bonds is widening, as the war in Ukraine intensifies the “volatility” of the markets. However, the so-called risk premium (CDS) for Greek bonds, continues to move at levels corresponding to those of economies that have an investment grade.

The margin of the Greek 10-year period compared to the corresponding German bonds, increased in February compared to the previous month by 51 basis points to 239 corresponding, continuing the upward trend of recent months.

The so-called fair valuation of the 10-year spread based on the fundamental figures of the Greek economy, according to the analysis department of Piraeus Bank (170 bp at the end of February, strengthened by 30 bp from the previous measurement) is moving upwards.

Despite the deterioration of both the 10-year spread and the overall Greek interest rate curve amid the difficult international economic climate, Credit Default Swaps (CDS) market valuations continue to rank Greece’s investment grade in the investment grade. ) and more specifically, two notches lower than the corresponding valuation in Italy.

In the domestic bond market and more specifically in HDAT, transactions of 58 million euros were recorded, of which 44 million euros related to purchase orders. The yield on the 10-year bond closed at 2.67% from 2.69% yesterday, compared to 0.32% of the corresponding German bond, with the result that the margin remained at 2.35%.

In the foreign exchange market, the euro is moving higher against the dollar, as the European currency traded early in the afternoon at $ 1.0956, from the level of $ 1.0931 where it was when the market opened.

The indicative price for the euro / dollar exchange rate announced by the ECB was set at $ 1.0991.

SOURCE: ΑΠΕ-ΜΠΕ