piraeus bank group

Greek Fixed Income Monitor - May 2015

A small unwinding and moderate increase was recorded for all maturities in the yield curve of Greek government bonds during the first two weeks of May. Nevertheless, yields to maturity remain at very high levels, and a gradual drop in government bonds was noted for the last ten days of May.

In May the Government Bond Index decreased by 6.23% relative to the previous month. This drop in the index price is mainly due to the sudden increase in government bond prices in the end of April (just before the Eurogroup meeting in Latvia on 24th April) and the following gradual decrease in prices until the end of May. The downward trend in government bond prices is expected to continue during June, following the decision of the Greek government to bundle its IMF loan repayments.

In contrast with the government index, corporate indices moved towards relatively better levels. Of all the indices, the Corporate Bond Index recorded the highest month on month increase of 1.23%.

In May there were coupon payments for the two PPC bonds on 1st May, the Hellenic Petroleum bond on 10th May, the Frigoglass, Motoroil and Intralot Capital bonds on 15th of May and finally for the OTE bond paid on 20th May.

Ηλίας Λεκκός

Group Chief Economist

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