Greece Sets Record Demand in Bond Sale as Investors Grab Yield

A selection of Euro coins sit on a display of Euro banknotes. Photographer: Alessia Pierdomenico/Bloomberg


Greece Sets Record Demand in Bond Sale as Investors Grab Yield

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Greece received its strongest-ever demand for a bond sale and cemented its place as one of Europe’s most sought-after borrowers.

The nation drummed up 30 billion euros of offers for its 2.5 billion-euro ($3.1 billion) sale of bonds due in 2031, the day before the European Central Bank’s next policy decision. The demand, in excess of 11 times the amount on sale, topped the previous record set in January this year by one billion euros.

Speculation that the ECB will prolong emergency asset purchases have emboldened investors to boost exposure to Europe’s riskier sovereign periphery in the past month-and-a-half. Italy enjoyed a similarly strong showing in a debt sale Tuesday. European policy makers are expected to keep their ultra-loose monetary stimulus in place for the summer at least.

Greece Sets Record Demand in Bond Sale as Investors Grab Yield

Greek 10-year bond yields fell four basis points to 0.81% Wednesday. Those on their Italian peers led declines across Europe, dropping six basis points to 0.81%.

The securities are among the highest-yielding in the region. Last week, the risk premium of Greece’s 10-year bonds over equivalent German securities -- the region’s paragon of safety -- briefly dropped below 100 basis points last week for the first time since 2008.

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