Greek and Spanish bonds on the rise
Spanish government bonds rose yesterday, pushing 10-year yields to the lowest since 2009, as improving euro-area retail sales and German factory orders added to signs the region’s recovery is gathering momentum. Greek 10-year securities advanced for a second day, with yields falling to the least since May 2010. “The
Hotels in Athens are showing an average 4.2 percent decline this month compared to January 2013, according to data compiled by online booking service Trivago, as a benchmark twin room costs 68 euros per night against 71 euros last year. Compared to January 2009, the drop amounts to 33.3 percent. euro-peripheral countries have come a long way from the near-death situation two years ago,” said Soeren Moerch, head of fixed income trading at Danske Bank A/S in Copenhagen. Greek 10-year yields slid 11 basis points to 7.73 percent after declining to 7.63 percent, the lowest level since May 19, 2010. European government bonds rallied after Ireland raised 3.75 billion euros from a 10-year sale through banks on its return to financial markets following an exit from an international bailout.
Albania’s economy shrank 2.3 percent year-on-year in the third quarter of 2013, as output fell in all sectors bar agriculture during a lengthy change of government after a June election. Output dropped by 10 percent in construction, by 4.6 percent in manufacturing and by 3.4 percent in the trade, hotel and restaurant sector, despite the sum- mer tourist season. Albania’s economy posted strong growth of around 6 percent per year from 2000, albeit from a low base. But it began losing steam with the onset of the global economic downturn in 2008 and particularly the acute crises in neighboring Greece and Italy.
Turkiye Finans Katilim Bankasi AS, the Islamic lender majorityowned by National Commercial Bank of Saudi Arabia, is looking to Malaysia for funding as political risk boosts borrowing costs in Turkey. Turkiye Finans applied to the Capital Markets Board in Ankara to sell as much as 3 billion ringgit ($914 million) in Islamic bonds to qualified investors in the Southeast Asian nation over 20 years, Executive Vice President Ali Guney said. The lender plans to complete a debut sale for the ringgit equivalent of between $100 million and $150 million by early March, he said.