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A decisive role in the positive developments experienced by the government bond market was the inclusion of our country in the eurozone, which created the conditions for the upgrade (to A from A-) of the debt of the Greek State in domestic currency (euro, from 1 January 2001) by international credit rating agencies Standard & Poor’s and Fitch IBCA in March and June respectively.

 

These movements contributed to the strengthening of the attractiveness of Greek government securities, which led to a rise in prices resulting in the recording of significant capital gains for their holders. Indeed, throughout 2001, except for December, bond prices across all maturities were up by 50-60 basis points in the 2- to 4-year portion of the yield curve, and up to 316-394 units, in the part of the curve beyond 15 years.

The price of the 10-year representative bond (benchmark), which during its syndicated issue on 30.1.2001 was set at 99.678 (with a yield of 5.35%), closed at 100.440 (5.28%) on 28.12.2001 and its price 20-year bond rose to 109,360 (5.65%) from 105,420 (6.01%) at the end of the previous year. The downward correction shown by bond prices in December in the international markets, and by extension also in the Greek, was due on the one hand to the movements of investors to take profits before the end of the financial year and, o

n the other hand, to the first signs of stabilization of macroeconomic conditions worldwide and, above all, in the US. which during its syndicated issue on 30.1.2001 had reached 99.678 (with a yield of 5.35%), closed at 100.440 (5.28%) on 28.12.2001 and the price of the 20-year bond reached 109.360 (5.65%) ) from 105,420 (6.01%) at the end of the previous year. The downward correction shown by bond prices in December in the international markets, and by extension also in the Greek, was due on the one hand to the movements of investors to take profits before the end of the financial year and, on the other hand,