Stabilizing trends dominate the secondary market bondsas investors are discounting that next week the European Central Bank will proceed with another interest rate hike, likely by 0.25%.

However, the “resilience” shown by the Greek bonds “in these adverse” conditions, the margin of the 10-year bonds against the corresponding German ones, fell today during the session to a new low of one year (1.25%).

This development, if confirmed, will lead the key interest rate (acceptance of deposits) of the ECB to 3.5% from the current 3.25%. It is recalled that the head of the Central Bank, Christine Lagarde, said last Monday that it is still too early to judge whether structural inflation has reached its highest peak, confirming that interest rates must necessarily continue to rise. Besides, the money futures market has already discounted – in addition to next week’s increase – one more in July.

It is indicative that most economists in surveys that they carry out from time to time predict that the key ECB interest rate will have reached 3.75% by the end of 2023. That is, at the highest level of the last 23 years since October 2000.

Despite this, inflation remained at 6.1% (in May), three times higher than the 2% target set by the ECB.

In the secondary bond market today, and more specifically in the Electronic Transaction System (HDAT) of the Bank of Greece, transactions of 140 million euros were recorded, of which 60 million euros related to purchase orders.

The yield on the Greek 10-year bond stood at 3.73% from 3.7% that closed yesterday, versus 2.41% for the corresponding German bond, bringing the spread to 1.32%, the lowest levels in the last 12 months .

In the foreign exchange market, the euro is moving upwards against the dollar, with the result that in the afternoon the European currency trades at 1.077 dollars from the level of 1.0756 dollars, which opened the market.