The negative climate in the bond market is maintained, as a result of which their yields continue to rise.
Although the ECB is trying to calm the markets by assuring that loose monetary policy is not going to end abruptly, investors do not seem convinced and are anticipating rising interest rates.
Under these conditions, the yield on the Greek 10-year bond today exceeded 1.37%.
Nevertheless, an analysis by Piraeus Bank points out that the purchase of CDS (bankruptcy insurance premiums) invoices Greek risk premiums at investment levels, while the valuation of companies (which after the fiasco suffered by Lehman Brothers a conservatism) lags far behind this very substantial milestone.
However, the resilience of Greek bonds is strengthened by the “findings” of the 12th Enhanced Surveillance Report, published today by the European Commission. It states that:
1. General Government cash and cash equivalents were close to € 40 billion at the beginning of October 2021 – the highest level since the end of 2019.
2. Short-term risks to public debt sustainability remain subdued, although in the long run these risks increase in a “low growth” scenario. In the baseline scenario, debt is reduced from 203% of GDP in 2021 to about 54% in 2060, while gross financing needs remain below 15% of GDP in the long run.
In the domestic secondary market, yields moved higher. Indicatively, the yield of the 10-year bond ranged at 1.34% from 1.19%, the yield of the 5-year bond moved upwards to 0.49% from 0.34% and the yield of the 15-year bond fell to 1.39% from 1.26 %.
In the Electronic Transaction System of the Bank of Greece (HDAT) transactions of 201 million euros were recorded, of which only 29 million related to purchase orders. The yield on the 10-year benchmark bond stood at 1.34%, compared to -0.22% of the corresponding German bond, resulting in a margin of 1.56% from 1.47%.
In the foreign exchange market, the euro fell below $ 1.2 today and traded early in the afternoon at $ 1.1194 from the $ 1.1246 where it was when the market opened.
The indicative price for the euro / dollar exchange rate announced by the European Central Bank was set at $ 1.1206.
SOURCE: ΑΠΕ – ΜΠΕ
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