Rising prices and high trading activity were seen today in the secondary bond market ahead of tonight’s Fitch ‘verdict’.
It is noted that since last June, the international rating agency Fitch has rated Greece with BBB- and the outlook is stable.
Fitch recognizes that Greece is recording one of the largest debt reductions among the countries it covers, as the performance in the fiscal field is accompanied by satisfactory growth rates. Based on the firm’s latest estimates, the growth rate will be 2.3% this year, 2.4% in 2025 and 1.9% in 2026.
More generally, according to the rating agencies, further upgrades to the country’s credit rating may result from sustainable economic performance, prudent fiscal policy, the continuation of structural reforms that promote the competitiveness of the Greek economy and a further reduction in the stock of non-performing loans of bank loans, with the latter thus approaching the EU average.
In any case, however, the markets are pricing Greek government bonds more favorably compared to the average of government bonds with a corresponding BBB rating. As analysts estimate, the pricing of Greek government bonds by the market corresponds to a -A credit rating.
It is indicative that the yield on the 10-year bond today fell to 3.12% from 3.22% at the beginning of the week.
In more detail, in the secondary market and more specifically in the Electronic Transaction System of the Bank of Greece (HDAT), 352 million transactions were recorded. euros, of which 154 million euros were related to purchase orders. The yield of the Greek 10-year bond was 3.12% compared to 2.24% of the corresponding German bond, resulting in a margin of 0.91%.
RES/EMP
#Bond #market #ahead #Fitch
During the discussion about investor sentiment, what specific types of activity in the bond market indicate anticipation of an upgrade or downgrade by Fitch?
## World Today News In-Depth: Greece’s Rating Prospects
**Welcome to World Today News In-Depth. Today we’re discussing Greece’s economic outlook in light of Fitch’s upcoming rating decision. Joining us are:**
* **Dr. Elena Dimitriou:** Professor of Economics at the University of Athens, specializing in sovereign debt and financial markets.
* **Andreas Georgiou:** Financial analyst at a leading investment firm with expertise in Greek bond markets.
**Section 1: Preparing for Fitch’s Verdict**
* **Interviewer:** Dr. Dimitriou, Fitch currently rates Greece BBB- with a stable outlook. What are the key factors that could lead to an upgrade or downgrade in tonight’s announcement?
* **Interviewer:** Mr. Georgiou, the article mentions significant activity in the bond market ahead of Fitch’s decision. What does this tell us about investor sentiment? Are they anticipating a positive or negative outcome?
**Section 2: Assessing Greece’s Economic Performance**
* **Interviewer:** Dr. Dimitriou, Fitch highlights Greece’s robust fiscal performance and growth projections. Do you believe these factors are sustainable in the long term, given global economic uncertainties?
* **Interviewer:** Mr. Georgiou, the article states that markets are pricing Greek government bonds favorably compared to other BBB- rated bonds. What does this indicate about investor confidence in Greece’s economic prospects?
**Section 3: Structural Reforms and Future Challenges**
* **Interviewer:** Dr. Dimitriou, Fitch emphasizes the need for continued structural reforms to promote competitiveness. What specific areas should Greece prioritize to address lingering structural weaknesses?
* **Interviewer:** Mr. Georgiou, the article mentions the importance of reducing non-performing loans. How crucial is this for attracting further foreign investment and driving economic growth in Greece? What strategies can be implemented to further address this challenge?
**Section 4: Looking Ahead: The Bigger Picture**
* **Interviewer:** Dr. Dimitriou, how does Greece’s current economic situation compare to other Eurozone countries? What unique challenges and opportunities does Greece face?
* **Interviewer:** Mr. Georgiou, what advice would you give to investors considering Greek bonds in the current climate?
**Concluding Thoughts**
* **Interviewer:** Thank you both for your insightful perspectives. This discussion highlights the complex interplay of economic indicators, investor sentiment, and structural reforms in shaping Greece’s future. We’ll be eagerly awaiting Fitch’s decision tonight and will continue monitoring its implications for Greece’s economic outlook.
