When the book opened earlier in the day it received €1.5 bln in interest and edged closer €2.0 bln by the end of the day, allowing the government to up the size of the bond issue from the €500 mln suggested on Tuesday. Finance Minister
The interest coupon was initially expected to be around 5.00-5.25%, Reuters said it opened with an official guidance of 4.90%, which is tighter than initial price thoughts released on Tuesday and having dropped to 4.85% settled at 4.75%.
"It just shows that the chase for yield is still very much on and 4.75-4.85% for 5 years in a low inflation environment is going to get a lot of attention. It's been a supportive factor of the euro for many months now," said
"Bond yields have been falling, there has been a string of good news on the macroeconomic front and if you have any lingering worries that
"So, as long as the coupon (interest rate) is not too high and it helps to smooth out maturities then it is a sensible move right now," added the Financial Mirror columnist and economist.
The issue follows a smaller €100 mln 6-year bond in April, where the government wanted to test the waters and achieved a steep 6.50% via private placement. Although it had a high yield, it nonetheless helped rebuilt confidence in
"We are satisfied with the very positive outcome and the fact that the rate is clearly below 5% suggests that
"This has fortunately refuted all the worries expressed over the past few days, which fully justifies the choices of the government and specifically the Minister of Finance (
"With the pace of reforms continuing, we have every reason to believe that future reviews (by the Troika of international lenders) will continue to be positive," Prodhromou said.
"While the economy was badly burnt in the bailout [a year ago], forcing the government to trim the holdings of depositors to recapitalise the banking sector,
"Standard & Poor's upgraded the country's credit rating to B after the economy only shrank by 5.4% last year - less than expected by the IMF - and predicted that the contraction would slow to 4% this year," the FT had added.
The yield on
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