Periphery sovereigns cue up deals after Pepp boost

By Lewis McLellan
08 Jun 2020

Greece and Ireland are set to test the primary bond market this week, returning to one buoyed by a fresh injection of confidence after the European Central Bank expanded its Pndemic Emergency Purchase Programme (Pepp) last week.

Both countries enjoyed a steep fall in their bond yields versus Bunds after the announcement on Thursday of the €600bn expansion to the Pepp. Ireland’s spread to Bunds dropped from 50bp to 43.5bp, while Greece’s fell from 185bp to 168bp.

The two countries, both in the eurozone periphery, ...

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