In the foreign exchange market, the euro is moving down against the dollar
The expectation of integration of Greek bonds in international benchmarks (after the upgrade of the country’s Public Debt to investment grade by two major houses, S&P last October and Fitch more recently) maintains the positive climate in the market.
The Swiss bank UBS predicts a further rise in Greek bonds – their yields have already fallen by around 1% since mid-October – as in today’s analysis it points out that they could participate with a 1% stake in the Bloomberg Euro Ag index. Their entry will probably take place in January. Their average duration is estimated at 7.02 years and will slightly increase the overall duration in the index.
In addition, he believes that macroeconomic and fiscal factors are still favorable for Greek securities. They see a reduction in Greek debt to 159% of GDP this year, to 152% in 2024 and to 144% of GDP in 2025. If the estimate is confirmed, it would be a reduction of 60 basis points compared to the levels of 205% of GDP at which it had jumped during the pandemic.
In addition, UBS expects that the Greek economy will continue to run at rates significantly higher than the Eurozone average, and specifically at an average rate of 3% for the next two years, it was pointed out in APE BPE.
In the secondary bond market today, and more specifically in the Electronic Transaction System (HDAT) of the Bank, transactions of 70 million euros were recorded, of which 22 million euros related to purchase orders.
The yield on the Greek 10-year bond stood at 3.44 from 3.43% that closed on Friday, against 2.26% of the corresponding German bond, resulting in a spread of 1.18%.
In the foreign exchange market, the euro moves down against the dollar, with the result that in the afternoon the European currency trades at $1.0750. from the $1.0763 level, which opened the market.
