A Greek Finance ministry decision to propose a bond swap deal to bondholders – owners of Greek state bond resulting from a PSI arrangement – is creating more space for Greek bond purchases by the European Central Bank.
The Public Debt Management Authority on Monday called bondholders of state securities maturing in 2023, 2024 and 2025 to agree to a swap deal with new bonds maturing in 2027, 2033, 2037 and 2042. The swap deal covers state bonds of a nominal value of around 4.0 billion euros. The deal will allow ECB to buy more Greek bonds in the framework of its PEPP programme. ECB has already purchased Greek bonds of a nominal value of 30 billion euros so far.
In the domestic electronic secondary bond market, the 10-year bond yield was 1.32%, with the yield spread against the 10-year German Bund at 1.71%. The German Bund yielded -0.39%. Turnover was 154 million euros of which 54 million were buy orders.