The Greek government will enter the markets tomorrow with a 5-year bond auction. As the Public Debt Management Agency announced a short while ago, an auction will be held on Wednesday 17 July 2024 for the reissue of Greek Government Bonds, at a fixed interest rate of 3.875%, maturing on 12 March 2029.

The purpose of the reissue is to satisfy investment demand and at the same time to facilitate the operation of the secondary bond market.

The amount to be auctioned will be up to EUR 250 million and the settlement date will be Wednesday 24 July 2024 (T+5).

The auction will only be open to Primary Dealers (B.D.) by submitting, exclusively up to 5 competitive bids each, which must be submitted by 12:00 noon (pm), local time, on 17 July 2024 and which are satisfied up to the amount of the auctioned amount at the price of the last bid accepted in the auction (cut off price).

The auction is being held in a positive climate, following the upgrade of the Greek economy’s outlook with most securities’ prices strengthening and their yields moving downwards. The high trading activity in the secondary market is also indicative.

Specifically, the Bank of Greece’s Electronic Trading System (ETS) recorded 290 million euros of transactions, of which 165 million euros were related to buy orders.

The yield of the Greek 10-year bond was 3.39% compared to 2.43% for the corresponding German bond, resulting in a spread of 0.96%.