Bonds: Rise in the secondary market with a view to Fitch’s ‘new’

There was a rise today (22.11.2024) in prices and high in the secondary bond market, in view of tonight’s ‘new’ . It is noted that the international rating agency Fitch since last June has been assessing Greece with BB- and prospects stable. Fitch acknowledges that Greece’s record of one of the largest debt reductions among the countries it covers, as performance in the financial field is accompanied by satisfactory growth rates. Based on the latest estimates of the house, the growth rate will be 2.3% this year, 2.4% in 2025 and 1.9% in 2026. More generally, according to the rating houses, further upgrades of the country’s credit capacity can result from sustainable economic performance, prudent fiscal policy, continuation of structural reforms promoting the competitiveness of the Greek economy and a further reduction in the reserve of unperforming bank loans, with the latter thus approaching the EU average. In any case, however, the markets price Greek government bonds more favourably than the average government bonds with a corresponding BB rating. As analysts estimate, the pricing of Greek government bonds from the market corresponds to a level-A credit rating. It is indicative that the performance of the 10-year bond today declined to 3.12% from 3.22% at the beginning of the week. More specifically, on the secondary market and more specifically on the Electronic Transaction System of the Bank of Greece (EDAT) transactions of EUR 352 million were recorded, of which EUR 154 million concerned purchase orders. The performance of the Greek 10-year bond was set at 3.12% % versus 2.24% of the respective German title resulting in the margin being 0.91%. Source: RES – ICM