Thursday, November 29, 2018

Greece delays bond sale after Italian market turbulence

by Kerin Hope & Kate Allen

Financial Times

November 30, 2018

Greece has quietly postponed a landmark bond sale after the prolonged sell-off in Italy’s bond market pushed up its cost of raising new debt.

The nation’s leftwing Syriza government had hoped to issue a benchmark 10-year bond within a few weeks of the country’s exit from its €86bn third bailout in August, as a signal to investors that Greece had returned to normalcy.

But the rise in Italian bond yields has rippled through into Greek markets, pushing the Greek 10-year yield well above 4 per cent, double that of Portugal, to what Athens bankers called “impossible rates”.

In response, the government has allowed its bond sale to lapse.


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