Record low yield as new Greek government taps market

  • Wednesday 17, July 2019 11:06 AM
  • Record low yield as new Greek government taps market
Sharjah24 – AFP: Greece's new conservative government placed seven-year bonds at a record-low yield on Tuesday in its first foray into the debt markets since its election earlier this month.
"I would like to congratulate the Public Debt Management Agency and the Ministry of Finance on the issuing of a 7-year bond at a record low yield of 1.9 percent," Prime Minister Kyriakos Mitsotakis said in a tweet.

"This is a vote of confidence in Greece’s growth prospects," he added.

The Greek debt agency later said it had raised 2.5 billion euros ($2.8 billion) in the sale, adding that final offers were in excess of 13 billion euros.

"This 7-year benchmark issue, which adds yet another point to Greece’s yield curve, (was) priced with the lowest yield (1.90 percent) and lowest coupon (1.875 percent) that the Hellenic Republic has ever achieved for a euro-denominated benchmark syndication," the debt agency said.

Mitsotakis' new conservative government has made boosting slugging growth a priority, powered by tax cuts and accompanied by privatisation deals.

The agency said this was the first time since the start of Greece's decade-long economic crisis in 2010 that the country had carried out three bond sales in one year.

Under its previous leftist government, Greece had sold a 10-year bond in March and a 5-year bond a month earlier.

Greek borrowing costs have fallen sharply in recent weeks.