Bond

Greek bonds outperformed their eurozone counterparts considerably on Monday, with the 5-year Greek note even matching Spanish paper, having received a boost from Greece's upgrade by Fitch Ratings on Friday night.

The Public Debt Management Agency on Wednesday reopened Greece's 10-year bond that matures on June 15, 2033, raising 200 million euros and securing a rate of 3.76%, against a rate of 4.34% in the previous such auction four weeks earlier.

With total bids reaching €933 million, the bid-to-coverage ratio was 4.67, up from 3.79 on October 18.The settlement date is November 22. 

We were very late in succeeding, but, even now it is recognized that the sacrifices and reforms made in the last 10 years in Greece following the country's debt crisis have had a positive effect. That is why two international rating agencies have recently removed Greek bonds from the "junk" category and upgraded them to investment status.

The government is offering small private investors another chance to enter an interest-bearing bond auction, in the context of Wednesday's six-month treasury bill issue.

BELGRADE - The Serbian Public Debt Administration on Wednesday announced it had sold 12-year dinar-denominated government bonds at an auction for 5.09 bln dinars.

In a statement, the Administration said an issue of 12-year Serbian government bonds, maturing on August 20, 2032 and first issued on February 18, 2020, had been reopened on Tuesday.

The government is restoring the opportunity for small private investors to take part in an interest-bearing bond auction, ending the scenarios for the issuance of a public bond.

The decision late on Friday by German credit rating agency Scope Ratings to upgrade Greek debt to BBB-, that is, investment grade, comes on the heels of a similar decision by Japanese firm R&I and provides hopes that the "big four" ratings firms recognized by the European Central Bank - Fitch, Moody's, Standard & Poor's and DBRS - will move in the same direction, bestowing an investment

Greek bond yields have fallen fast and currently the 2- and 10-year-bonds are trading at around the European average, 3.31% and 3.8% respectively.

Since the European Central Bank (ECB) started raising its rates to fight inflation, Greek borrowing costs have dropped by almost 10%, even as other eurozone members have seen their own inching upward.

The Greek state on Wednesday borrowed 250 million euros from the markets at an interest rate of 3.3%, by auctioning Greek bonds maturing on June 15, 2028.

During the auction, carried out by the Public Debt Management Agency, the total bids amounted to €1.046 billion.

The settlement date is Wednesday, July 26. 

Greece's first post-election market foray was crowned with success on Tuesday, with the issuance of the new 15-year bond garnering strong demand from investors, who priced in the country's upcoming upgrade to investment grade.