Greece taps bond market again as borrowing rates drop

Greece on Tuesday launched a 7-year bond auction, its third effort in 2019 to raise money from international markets, as it aims to take advantage of an improvement in borrowing rates to fulfil its financing needs for the year.

The auction aims to raise 2.5 billion euros (US$2.8 billion) and follows 5-year and 10-year bond issues earlier this year. Altogether, the issues look to raise about 7 billion euros ($7.9 billion).

Tuesday's auction is the first by the new government of conservative Prime Minister Kyriakos Mitsotakis, who has promised a steady return to bond markets following three international bailouts and to renegotiate strict budget performance targets with creditors.

Greece has promised lenders it will deliver an annual primary budget surplus - the balance before debt servicing costs - of 3.5 percent for the coming years. But the new government...