Annual assessment of the Greek government bond marketplace.

The inclusion of our united states in the eurozone played a decisive role in the superb traits experienced with the aid of the authorities securities marketplace, which created the conditions for the upgrade (to A from A-) of the debt of the Greek state in home foreign money (euro, from 1 January 2001) by using international credit score rating groups preferred & terrible’s and Fitch IBCA in March and June respectively. Those movements contributed to the strengthening of the beauty of Greek government securities, which caused a rise in prices resulting in the recording of tremendous capital gains for their holders. Certainly, throughout 2001, except for December, bond fees across all maturities were up through 50-60 foundation points inside the 2- to four-12 months portion of the yield curve, and as much as 316-394 devices, inside the a part of the curve beyond 15 years. The charge of the 10-12 months consultant bond (benchmark), which for the duration of its syndicated trouble on 30.1.2001 changed into set at 99.678 (with a yield of five.35%), closed at 100.440 (5.28%) on 28.12.2001 and its rate 20-12 months bond rose to 109,360 (5.65%) from one zero five,420 (6.01%) on the give up of the previous year.

The downward correction shown by means of bond prices in December at the worldwide markets, and by way of extension additionally at the Greek marketplace, changed into due on the one hand to the actions of traders to take profits before the give up of the financial year and, then again, to the primary signs of stabilization of macroeconomic conditions worldwide and, especially, inside the US. Which at some stage in its syndicated difficulty on 30.1.2001 had reached ninety nine.678 (with a yield of five.35%), closed at a hundred.440 (5.28%) on 28.12.2001 and the charge of the 20-yr bond reached 109.360 (five.65%) ) from one hundred and five,420 (6.01%) at the quit of the preceding year.

The downward correction proven through bond costs in December at the international markets, and via extension also on the Greek marketplace, changed into due on the one hand to the movements of buyers to take income before the quit of the financial year and, then again, to the first signs and symptoms of stabilization of macroeconomic situations global and, notably, inside the US. Which for the duration of its syndicated issue on 30.1.2001 had reached ninety nine.678 (with a yield of five.35%), closed at a hundred.440 (five.28%) on 28.12.2001 and the fee of the 20-yr bond reached 109.360 (5.Sixty five%) ) from 105,420 (6.01%) on the end of the previous yr. The downward correction shown via bond prices in December at the global markets, and with the aid of extension additionally at the Greek market, turned into due on the one hand to the moves of traders to take profits earlier than the stop of the financial yr and, then again, to the first signs and symptoms of stabilization of macroeconomic situations worldwide and, principally, in the US. 01%) on the cease of the preceding year.

The downward correction proven by means of bond costs in December on the worldwide markets, and by extension also at the Greek market, become due on the only hand to the actions of buyers to take income before the end of the financial yr and, then again, to the first signs and symptoms of stabilization of macroeconomic conditions global and, above all, within the US. 01%) at the end of the preceding year. The downward correction proven through bond prices in December on the global markets, and through extension also at the Greek marketplace, become due on the one hand to the moves of buyers to take income before the give up of the economic yr and, on the other hand, to the primary signs and symptoms of stabilization of macroeconomic situations global and, specifically, in the US.

At the equal time, the de-escalation of inflation both in Greece and in the international locations of the euro quarter, as well as the successive discounts in hobby prices via the eu relevant bank and the Federal Reserve throughout 2001 and, particularly, after the terrorist assault of Sept. 11 towards the united states, contributed to the sluggish decline inside the yields of the Greek government bonds, which accompanied the tendencies in the international bond markets. Therefore, the Greek country was given the opportunity on the one hand to finance its borrowing desires in home forex, with a corresponding trouble of its borrowing in foreign exchange, and then again to significantly lessen the corresponding value. For example, the yield on the 12-month promissory observe, that’s the premise for calculating the interest of all floating price bonds issued by the nation in the past, during the first auction, in February 2001, it turned into 4.24%, whilst over the past one, in December 2001, it was decreased to a few.02% . Also, the yield at the time of issuance (18.Four.2000) of the preceding 10-12 months bond changed into set at 6%, at the same time as at the time of the issuance of the final one it closed at five.35%.

The boom within the fee of transactions in HDAT became leaps and limits, amounting to 314 billion euros in 2001 towards approximately 64 billion euros in 2000. The best transactional motion happened within the final quarter of the yr, and specially in November (fifty seven billion euros) , even as the average month-to-month price of transactions at some stage in the 12 months become 26.2 billion euros from 5.3 billion euros in the corresponding length. The whole cost of transactions recorded inside the Intangible Securities device amounted to two,835 billion euros (eleven,339 million euros or 3,864 billion drachmas on common daily) in 2001 from 1,half billion euros in 2000.

The massive boom in marketplace liquidity was also meditated inside the narrowing of the margin between the acquisition rate and the sale price (bid/ask unfold) of securities. This margin, as is also the case in the corresponding european markets, is now variable depending on the final length of the securities till maturity. At some stage in 2001 the spread ranged between 2 and 7 foundation points (bps) for securities with maturities of as much as 7 years, between 5 and 10 bps for securities with maturities of as much as eleven years and between 7 and 15 bps for securities with maturities past eleven years. The average month-to-month spread in 2000 was 19 bps across the yield curve.
The narrowing of the distinction (unfold) of the yields of Greek in comparison to the relaxation of the ecu government securities was also surprising, reflecting the self assurance of home and foreign investors inside the Greek capital marketplace. The common yield spread between the ten-year Greek and the corresponding German benchmark bond narrowed to 38 bps in December 2001 from 62 bps inside the corresponding month final year, even as the lowest level (33 bps) turned into recorded at the twenty seventh of the same month.

A substantial contribution to the high quality direction of the market changed into also the selection to grant, from 2001, the status of number one supplier to overseas banks that exchange on HDAT immediately from abroad, specifically from London, the use of the technique of far off get admission to. The best market outlook for 2002 is likewise contemplated via the great quantity of overseas banks that applied for essential provider fame this yr, which changed into granted to twelve foreign banks (10 trading from their places of work abroad) and five Greek banks.

For the reason that deposit rates at the moment are soaring at in particular low tiers and Greek bonds will hold to offer high yields to adulthood, most of the people is anticipated to, below ordinary instances, invest greater in bonds so one can cozy higher returns to the economies of.