LONDON, April 10 – Greece’s much-heralded return to the bond market buoyed euro zone debt today, outperforming flat equity markets as gains driven by easing US interest rate concerns fizzled out.
Just two years after being at the epicentre of the euro zone’s sovereign debt crisis, Greece drew solid demand at a sale for five-year bonds that aimed to raise €3 billion (RM13.4 billion) and offered a yield of 4.95 per cent, beating Athens’ 5 per cent target.
The country’s deputy prime minister Evangelos Venizelos said the sale had been at least eight times oversubscribed.
The sale of Greek bonds boosted peripheral euro zone bond markets but had little impact on European shares.
The MSCI Europe equity index rose 0.2 per cent, in line with the global MSCI All-Country World index and the MSCI World Index, which only tracks stocks from developed economies.
However, Hampstead Capital hedge fund manager Lex van Dam said equities remained his preferred asset class.
He said world stock markets remained buoyed by the efforts of the Fed and other major central banks to support economic growth and keep interest rates low.
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