Analysts divided on outlook of Greek bonds ahead of new issue

The Greek bond rally that has brought the benchmark 10-year note's yield to its lowest level since 2005 has analysts divided, with Societe Generale recommending the acquisition of Greek debt and UBS urging caution with a "sell."

Either way Greek bonds remain at the focus of the markets, with investors anticipating a fresh issue in the next few days after last Friday's rating upgrade by DBRS, which came to settle some of the frustration in Athens from Standard & Poor's decision to refrain from an upgrade.

The most likely scenario for Greece's next market foray is the sale of a new seven-year bond, aimed at drawing a relatively small amount, of about 2.5 billion euros.

For Societe Generale, a new Greek bond issue would constitute an investment opportunity. It noted that the good news for Greece is not just that is has a huge cash buffer, but also that there is...