Fixed Income  

Greece eyes new bond sale today

Greece is planning to issue a new benchmark bond today despite the rocky eurozone periphery markets, as the country seeks to smooth out its yield curve and raise money for a debt repayment due in August.

Local press are reporting that Greece could seek up to €3bn through a three year bond sale, FastFT reports.

A deal has long been rumoured to come this week, and a person close to the situation said that it is likely to be issued as early as today, despite the softening appetite for periphery assets.

The 10-year bond yields of Italy, Spain, Portugal and Greece are all up today, sharply so for the latter two. Greece’s 10-year bond yield rose 11 basis points to just above the 6 per cent mark for the first time since early June.

So far there is no official confirmation of a debt sale, but the Athens debt management office is unlikely to be deterred by the weaker issuance environment as that could signal fear.