This assessment is reinforced by statements and positions of European officials and central bankers
The positive mood in the bond market remains, as investors discount another reduction in the interest rates by the European Central Bank (ECB) before the end of the year.
This assessment is reinforced by statements and positions of European officials and central bankers. Today the head of the Central Bank of Finland and member of the ECB Olli Rehn announced further interest rate cuts estimating that the ECB’s deposit rate will be at the so-called neutral level by the middle of next year. The neutral deposit rate according to analysts’ estimates ranges between 2.2% – 2.8% from the current 3.25%, it was emphasized in the EIA.
It is recalled that the ECB has already cut interest rates three times this year as prices have fallen.
In the domestic secondary market bonds high trading activity was recorded. The volume of transactions in the Electronic Transaction System of the Bank of Greece (HDAT) amounted to 64 million. euros, of which 30 million euros were related to sales orders.
The yield of the Greek 10-year bond fell to 3.19% from , compared to 2.39% of the corresponding German bond, resulting in a margin of 0.85%
