Markets appear eager for more Greek bond issues

The rally in Greek bond prices that followed last week's issue of a five-year note came to an end on Monday.

Analysts note that while the strong demand for the issue has led the government to start planning for its next market foray, the current favorable climate will be hard to sustain, as Greece remains "a special case."

The yield of the 5-year bond maturing in April 2024 showed a marginal improvement on Monday to 3.29 percent, some 9 percent below the yield of 3.60 percent upon the note's issue a week ago.

However, German lender DZ Bank warns that even though Greek spreads have fallen in recent days, the country risks are still there.

It points out that the new bond's yield was similar to that of the seven-year paper maturing in February 2025, so demand was high, with the market follow-up being positive too.

This success is set to whet Greece...