Another step towards normality has been made by Greece, with today’s issuance of annual bond treasury bills, which, together with non-competitive bids, is expected to raise a total of 1 billion euros.
The interest rate of 1.25% is more than satisfactory, especially if one considers that the 2019 maturity bond ranges at a yield close to 1.5%.
The fall in the interest rate to 1.25% is reportedly consistent with strong demand, and it is no coincidence that most of the issuance on competitive bids is directed to foreign portfolios.
Of the competitive offers, the state raised € 813 million. As mentioned above, the interest rate stood at 1.25%, while the issuance (the first of the 2010 kind) was overhauled by 3.18 times.
The last time an auction of securities of equivalent duration took place was 8 years ago, in April 2010, when the interest rate stood at 4.85%.
Today’s auction was conducted through the Primary Dealers, and the settlement date is Friday 16 March 2018.
Accepted bids were up to the amount of the auctioned bid, as well as non-competitive bids of € 187.5 million…./IBNA