Bond yields drop to lowest since 2014
LONDON (Reuters) – Greece’s short-dated government bond yields fell to their lowest since 2014 yesterday after eurozone governments threw Athens a credit lifeline worth 8.5 billion euros and sketched out new details on possible debt relief. Most eurozone yields were a touch lower on the day after heavy selling on Thursday on the prospect of tighter monetary policy in the United States and Britain. The spotlight was back on the bloc after a late deal on Thursday that allows indebted Greece to avoid a default on bailout repayments due next month. A French proposal to help bridge differences on debt relief is expected to underpin further eurozone discussions and the International Monetary Fund said it would join the existing bailout, offering Athens a standby arrangement of less than $2 billion. “This is a major step forward, in our view, coming after many months of uncertainty,” HSBC European economist Fabio Balboni said. “The deal should pave the way for the [European Central Bank] to include Greece in its [quantitative easing] program, which in turn should unlock access to markets for Greece, putting the country on the right track toward exiting the bailout program next year.” Greek twoyear bond yields fell 20 basis points to 4.76 percent, their lowest level since October 2014, while 10-year yields fell a similar amount to a low of 5.64 percent, the lowest since May 22.
GfK researchers expect retail commerce turnover in Greece to grow 1 percent this year, compared to 2016. This only concerns brick-andmortar stores and not e-commerce. Last year the sector suffered a 0.2 percent annual contraction, according to GfK’s European survey. Schaeuble said yesterday. He was responding to a call by a senior lawmaker from Germany’s center-left Social Democrats (SPD) for a full parliamentary debate on the eurozone’s latest financing deal for Greece. The Bundestag’s budget committee will on Wednesday debate the new deal and decide whether a full debate is needed. “I assume that such a decision by the budget committee would lead to new agitation and new uncertainty on the markets,” Schaeuble said in Luxembourg. A vote in the Bundestag on an 8.5-billion-euro disbursement of aid for Greece could embarrass conservative Chancellor Angela Merkel as some of her lawmakers oppose aid to Greece. Schaeuble said there were discrepancies between Germany, EU institutions and the International Monetary Fund on whether Greece’s debt was sustainable. nounced yesterday the acquisition of five commercial properties totaling approximately 87,000 square meters for a total consideration of 71 million euros. All properties have been leased to companies in the Sklavenitis supermarket group for 25 years. Three of the properties are in Attica – on Marathonos Avenue in Gerakas, on Athinon Avenue and on Petrou Ralli Street in Rendi – one is in Patra and one is in Limassol, Cyprus.