Bonds drop for sec­ond day

Kathimerini English - - Business & Finance -

Greek10-year gov­ern­ment bonds fell for a sec­ond day yes­ter­day af­ter Moody’s said there is a 50 per­cent chance that the coun­try will de­fault.

“The mar­ket’s fo­cus is on when we will get the new bailout pack­age and what con­di­tions will fea­ture, and that’s con­tin­u­ing to be the name of the game,” David Sch­nautz, a fixed-in­come strate­gist at Com­merzbank in Lon­don, told Bloomberg.

Greek 10-year yields rose 10 ba­sis points to 16.26 per­cent. The 6.25 per­cent se­cu­rity due June 2020 slipped 0.300 or 3 eu­ros per 1,000euro face amount, to 54.210.

Moody’s down­graded Greece to Caa1 from B1, the same level as Cuba, late Wed­nes­day.

Yes­ter­day, the euro gained ver­sus the dol­lar to the high­est level in al­most a month as Ger­man Chan­cel­lor An­gela Merkel said she’s com­mit­ted to the shared cur­rency.

The Euro­pean shared cur­rency gained as pol­i­cy­mak­ers con­sid­ered ask­ing in­vestors to rein­vest in new Greek debt when ex­ist­ing bonds ma­ture. The euro rose 0.9 per­cent to $1.4453.

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