The State goes to the markets today, a few days before the elections, in order to raise 400 million euros by reissuing the ten-year and fifteen-year bonds.

The climate is positive, which is reflected in the narrowing of the margin to 1.65%. At the lowest levels of the last twelve months.

Yesterday Tuesday, one day before the auctions that will be held today by Public Debt Management Organizationthe yield on the Greek 10-year bond remained below 4% and the spread against the corresponding German bonds fell to its lowest level in recent years.

The two auctions are part of the new program launched by ODDIX in the context of the better functioning of the secondary market.

From the reissuance of the 10-year bond, the State expects to collect revenues of 250 million euros, while through the auction of the fifteen-year bonds (maturity 2037), an amount of around 150 million euros.

The settlement date of the issue is May 24, 2023. Only the main negotiators will participate in the auctions by submitting through HDAT exclusively up to 5 competitive offers. The purpose of the re-issuance, as ODDIX notes in a related announcement, is to satisfy investment demand and at the same time the operation of the secondary bond market.

With the auctions, the total amount that the State will have raised since the beginning of the year is expected to reach around 7 billion euros, covering this year’s annual target.

In the secondary bond market yesterday, and more specifically in the Electronic Transaction System (HDAT) of the Bank of Greece, transactions of 34 million euros were recorded, of which 16 million euros related to purchase orders.

The yield on the Greek 10-year bond stood at 3.98% versus 2.33% for the corresponding German bond, bringing the spread to 1.65% from 1.74% at the end of the previous week.