Fixed income analysis

The yield of the Greek 10-year bond stood at 3.52% from 3.44% yesterday compared to 2.46% of the corresponding German bond

Alpha Bank on Wednesday announced it had successfully completed the issuance of a 500-million-euro senior preferred bond.

The issue attracted strong demand amounting to €1.3 billion, or roughly three times the initial target of €400 million.

Τhe 10-year Greek benchmark bond yield has this week fallen to its lowest levels in 10 months, returning to levels last seen in August 2022. 

Traders said market sentiment remained positive despite comments made by European Central Bank officials over the possibility of fresh interest-rate increases. 

The reopening of a 10-year Greek bond issue was more than five times oversubscribed during an auction held on Wednesday. 

The Public Debt Management Authority said that bids totaled 1.7 billion euros, significantly up from the €300 million asked. 

Ljubljana – High inflation and the prospect of monetary policy restrictions have dampened interest in state bonds in the secondary market, driving up the yield on state debt. The yield on the Slovenian 10-year bond has topped 2%.

The yield on the Greek benchmark 10-year bond dropped below 1 percent for the first time ever on Wednesday, on a day when other bond markets were quite mixed. Piraeus Bank benefited immediately from the yield slide with a very successful bond issue on Wednesday.

Greek Prime Minister Kyriakos Mitsotakis and the foreign press hailed the record-breaking yield for the 10-year benchmark bond, which on Wednesday's domestic electronic secondary bond market fell below 1 percent.

In a tweet on the prime minister's account, Mitsotakis said that "Greece is now on a growth trajectory," making the country a "great opportunity for global investors."

Greece's benchmark 10-year government bond yield fell below 1 percent for the first time on Wednesday, marking a milestone for a country bailed out three times in the last decade.

The Greek 10-year bond yield fell to as lows as 0.992 percent, Tradeweb pricing showed GR10YT=TWEB, dropping below 1 percent for the first time ever.

The yield on the Greek benchmark 10-year bond posted the biggest decline in the eurozone this year, amounting to 290 basis points (2.9 percentage points) according to a Reuters report on Monday.
The Italian equivalent decreased 137 bps, while those of Germany, the Netherlands and France are expected to end the year with drops of between 45 and 60 bps.

Greek bond yields have started to rival Italy's, with analysts estimating that the spread between them will soon drop to zero. This comes as Greece confirmed the return of market confidence on Wednesday, selling debt without interest.