PDMA to reopen benchmark 10-year bond on Monday

Greece intends to proceed on Monday with an extraordinary auction for the reopening of a 10-year Greek government bond (GGB) with a fixed interest rate of 1.75% maturing on June 18, 2032, in book entry form, the Public Debt Management Agency announced on Friday.

It said that “this operation aims to provide additional liquidity on this maturity point of the GGB curve” and the amount to be auctioned is up to 200 million euros, while the settlement date is November 21.

The yield of the specific bond on the secondary market is currently at around 4.7%.

According to the announcement, only primary dealers are allowed to participate with up to five competitive bids each, which must be placed through the Electronic Trading System by noon on Monday.

Competitive bids will be accepted up to the auctioned amount and will be allotted at the last bid accepted in the auction (cutoff price).