Fixed income analysis

Greek government bond yields fell on Tuesday, outpacing eurozone peers, as Greece began selling a five-year bond for the first time since emerging from an international bailout five months ago.

Foreign analysts discern a window of opportunity for Greece's return to the international bond markets immediately after Parliament votes on the Prespes name deal with the Former Yugoslav Republic of Macedonia, as the bond issue is seen serving as a useful tool for the ruling party's election narrative.

Greece's benchmark 10-year bond yield staged a remarkable rise on Monday as it increased by 2.61 percent to 4.35 percentage points.

This was up 10 basis points from last Friday's 4.25 percentage points.

The deterioration of the investment climate in emerging markets, along with the still fragile picture in Greece, despite its exit from the bailout program, and talk of government handouts ahead of the Thessaloniki International Fair are driving investors away from Greek securities, with bond yields climbing to three-month highs on Wednesday.

Greek bond yields continued to rise Tuesday, increasing worries about the cost of borrowing the country will face once it has to cover all of its financing needs through the market. At the same time Finance Minister Euclid Tsakalotos is adamant that Greece will not need a precautionary credit line and is embarking on a series of contacts in an attempt to attract investor interest.

Athens-listed MLS Multimedia SA announced on Thursday it had raised a total of 6 million euros through the issuance of a corporate bond via private placement. It offered 6 million common registered titles each worth 1 euro.

The duration of the corporate bond is five years and it is calculated based on an annual interest rate of 5.3 percent, according to its coupon. [Reuters]

The yield on a Greek government bond maturing in 2019 fell on Monday to its lowest level since it was issued three years ago, as Athens prepared to end a three-year exile from financial markets.

Greek state bond yields jumped on Wednesday to levels unseen since last June, when markets took a hit from the British referendum to leave the European Union. It is no surprise international agencies are particularly cautious about Greece.

Bulgaria's Finance Ministry reopened a 5-year issue of Government Securities (GS) with maturity February 4, 2020.

Securities with nominal value of BGN 100 million were offered at the auction held on September 14, 2015 . The annual average weighted yield achieved was 0.94%.

By comparison, the yield achieved at the previous auction on May 18, 2015 for the same issue was 1.28%.

By Lukanyo Mnyanda

Germany?s government bonds fell, extending a rout that pushed 10-year yields up last week by the most since 1998 amid an economic recovery that?s gathering pace.