Strong bullish trends prevailed in the secondary bond market today with the yield on the 10-year note falling intraday to 3.16%, the lowest level since July 2022.

The relatively better performance of Greek bonds has the effect of daily narrowing the margin against (10-year) German bonds, which is in fact very close to falling below the 1% limit.

Demand in the market is fueled – as we have mentioned above – by the imminent participation of Greek bonds in international investment indices, such as the Bloomberg Index, from the beginning of the new year.

It is noted that Bloomberg Index Services said earlier this month that it would reinstate Greece to the top global debt benchmarks as of January 1. Citigroup strategists estimate that the country’s bonds will make up 1.1% of the Bloomberg Euro Treasury Index after it joins.

After today’s decline in the yield of the 10-year bond, the cost of borrowing for Greece is at levels close to Spain (the yield of the 10-year Spanish bond is at 3.05%), while it is consistently lower than that of Italy (3.76%) ).

The Public Debt Management Organization is expected to announce by the end of the week its strategy for the financing of the Greek State for 2024.

At the same time, the State plans to proceed with yet another early repayment of part of the loans that have been granted to the country within the framework of the Memoranda. At the same time, the government plans to reduce the liquidity cushion created during the crisis to assure the markets that the country has enough money for its debt. This “cushion” will be around $30 billion in early 2024 and is expected to decrease over the next year

As Bloomberg reports today, the State is going to borrow 8 to 10 billion euros in bond issues in 2024 to cover its financing needs and to reduce the stock of interest-bearing bills (totaling about 11 billion euros). by 2 billion euros.

The international agency reminds that Greece has already been upgraded by the rating agencies Fitch Ratings and S&P and its economy is growing at a faster pace than most European countries, while it plans to repay loans early next year as well

In the secondary bond market, today, and more specifically in the Electronic Transaction System (HDAT) of the Bank of Greece, transactions of 28 million euros were recorded, of which 12 million euros related to purchase orders.

The yield on the Greek 10-year bond stood at 3.15% from 3.19% that closed on Friday, versus 2.07% for the corresponding German bond, bringing the spread to 1.08%.

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 $1.0924 from the level of $1.0898 that opened the market.