Upcoming Syndication Of 5yr Bond “Key Moment”
The Greek issue of a 5-yr. benchmark bond today is in the spotlight on Monday with 10yr GGB-bund spread yields floating around 303 bps.
If Greece can raise at least 3 bil. euro via its coming syndicated deal "without exhausting the pool of investor demand significantly," the concerns that the economy is heading towards bankruptcy should be watered down, and help stabilize Greece’s increasing borrowing costs for the time being at least, says Calyon according to Dow Jones Newswires. The firm notes that this would be evidence that Greece is still able to fund itself in the bond market and may offer temporary reprieve from further widening.
On the other hand, Nomura analysts estimate that Greece’s forthcoming syndication will be a key moment for the country’s ability to raise ongoing funding via traditional means.
Still, they note, "in a rational world, long Greece positions would carry significant value, but for now we prefer to confine ourselves to the very short end, bills in particular," the news agency reports.