On Thursday Greece repaid €450m it owed the International Monetary Fund. Bond yields slid as markets showed relief it had met its deadline.
Three-year bonds declined 54 basis points to 20.08 per cent and five-year bonds falling 30 bps to 14.98 per cent. The 10-year yield, which moves inversely to its price, slid 18 basis points to 11.03 per cent.
A central bank official said that Greece had made the payment.
However, the payment only brings minimal relief to the country, as it still lacks cash and is facing more looming debt repayment deadlines with €420m due to be paid back to international investors when a six-month treasury bill expires on April 14.
Greece is also to make a €950m repayment to the IMF in May as well as €2.4bn in outlays for pensions and salaries.
Analysts' opinions have divided on how and when, or even whether Greece will be able to reach an agreement with its creditors who have baulked at some of the concessions Athens has put forward.
The leftist anti-austerity government has failed to make a deal with the EU and IMF that would unlock €7.2bn in European
funding because of foot-dragging by its economic team over reforms that
would contradict Syriza’s election promises not to raise taxes or back
further privatisations, says the Financial Times.
