The Greek government is premiering its 2026 borrowing from the markets today with the syndicated issue of a 10-year bond.

Yesterday, the Government Debt Management Organization announced BofA Securities, BNP Paribas, Deutsche Bank, Goldman Sachs, JP Morgan, and Morgan Stanley as joint lead managers for the first 2026 bond issue.

The bid book, as is usually the case, is expected to open today when the new bond will be priced.

Yesterday, however, in the secondary market (HAD) the yield on the 10-year bond was at 3.35%, with the spread over the corresponding German bond (2.80%) narrowing to 0.55%.

Greece’s first exit to the markets coincided with J P Morgan’s unfavourable report on Greek bonds .

The US bank argues that Greek securities have already “converged” and yields have discounted much of the improvements.

JP Morgan notes that Greek bonds have passed the critical “convergence test,” meaning their yields and spreads relative to other European bonds are estimated to have incorporated much of the improvements in Greece’s economy in recent years. This means that there is now less scope for further yield declines, at least in the short term.

As a result of this, in a recent analysis JP Morgan recommends that investors partially liquidate their gains in Greek bonds – that is, take profits on the upside they have already given – because the scope for further significant spread tightening has narrowed.

Despite this more “neutral/cautious” trading signal, JP Morgan’s overall macro strategy for Greece remains positive:

Greece remains in overweight status as a market in a broader context of investment flows (beyond bonds) due to strong fundamentals, growth prospects and a more stable political-economic environment.

This picture reinforces the investment attractiveness of Greece as a whole, despite the limited returns already “discounted” in bond prices.

Greece is expected to draw on the markets for an amount of around €8 billion within 2026 to meet its borrowing needs in a basic way. It is recalled that in 2025, around 7.6 billion euros were raised.

Also, early repayments of public debt amounting to 8.8 billion euros are planned for 2026.

It should be noted that Greece’s exit to the markets coincides with the exit of the EFSF (European Financial Stability Facility).

The European Financial Stability Fund yesterday drew 7 billion euros from the markets, covering about 1/3 of its borrowing needs for the year . Specifically, 4 billion euros were raised through a 10-year bond with a yield of 3.125% and the remaining 3 billion euros through a 3-year bond with a yield of 2.375%.

Both issues attracted significant investor interest, with bids exceeding €52 billion.