Fixed income analysis

By Lukanyo Mnyanda

Greek bonds plunged, pushing 10-year yields to the highest this month, as speculation grew that the nation?s financial system may be just weeks from running out of cash.

Greek bonds declined on Monday, pushing three-year yields to the highest since the nation?s debt restructuring in 2012, after the government issued a decree to force municipalities to transfer cash to the central bank.

The decision is another sign of the worsening situation as Greece remains embroiled in a standoff with creditors as pension and salary payments come due.

By John Geddie

Greek two-year yields surged on Thursday to their highest since the bonds were issued last year after the Financial Times reported that the International Monetary Fund had rebuffed a request from the country to delay loan repayments.

By Lukanyo Mnyanda

Giving away your money doesn?t mean losing it these days.

Investors who held shorter-dated European debt have managed to eke out a positive return in 2015, according to Bank of America Merrill Lynch indexes. That was even as price increases pushed yields in Germany and Austria below zero.

Short-dated Greek yields edged up on Friday, while 10-year yields were down 11 basis points at 11.04 percent on persistent uncertainty over whether Greece?s international creditors would accept reform plans submitted on Friday to unlock much needed cash.

Greece sold 1.138 billion euros of three-month treasury bills on Wednesday to roll over a maturing issue, the country's debt agency PDMA said.

The T-bills were priced to yield 1.70 percent, unchanged from a previous sale in October - the lowest funding cost since January 2010, when the debt agency sold three-month treasury paper at 1.67 percent.

Greece’s 10-year bonds fell a third day, pushing the yield up by the most in more than 15 months, on concern the government’s plan to end its bailout early will leave the nation unable to raise funding sustainably.

Bulgaria's Ministry of Finance reopened for the 4th time this year the 5 year issue of Government Securities (GS) with nominal value BGN 55 million, issued on 22 January 2014 and with maturity 22 January 2019.

Greek bonds saw their yields climb as the government announced it plans to improve its yield curve with sales of seven- and 10-year government debt, according to the 2015 draft budget presented on Monday by Alternate Finance Minister Christos Staikouras.

Greek 10-year yields increased nine basis points to 6.44 percent and the 30-year rate climbed seven basis points to 7.06 percent.

Greece’s government bonds fell for a third day, pushing 10-year yields to the highest level in six weeks, amid concern the nation is seeking to become self- financing and put its budget controls at risk.