Greece’s leadership said the nation would try to buy back 10 billion euros worth of its bonds in the public markets as a way to lower its borrowing costs. The number is relatively small compared to Greece’s overall sovereign obligations, but the move would be a start. And, if this first foray works, it will show that capital markets might support other similar deals in the future. The Wall Street Journal reports:
Greek government bonds after the announcement rose sharply to their highest levels since the debt restructuring in March as the stated buyback prices were much higher than some investors had expected.
The price of the 2023 Greek bond rose to 39.88 cents to a euro, pushing the yield on the bond 1.5 percentage point below Friday’s close at 14.43%, the lowest level since March. The price of the 2042 bond climbed to 31.43 cents to a euro for a yield of 11.58%, down 0.81 percentage point.
Douglas A. McIntyre