Expectations for new reduction are enhanced interest rate by ECB from the positive climate maintained in the bond market.
One week before the ECB’s Board of Directors meeting, the French Central Banker, Billewit, said today (27.5.2025) that “normalization of interest rates has not yet been completed”.
He even announced that the ECB’s Board of Directors may be moved next week (June 5), implying indirectly except for a new interest rate decline, resulting in the basic deposit rate falling from 2.25% to 2%.
In the domestic bond market, although prices have been upward following the general trend of European markets, the 10 -year bond margin after yesterday’s “dive” came to 0.7%today.
In the secondary bond market today, and more specifically, the Bank of Greece’s electronic trading system (HDAT) recorded € 145 million, of which € 75 million were related to market orders and the remaining EUR 70 million in selling orders.
Greek 10 -year bond yield fell to 3.30% from 3.35% against 2.53% of the corresponding German title, with the margin of 0.77% from 0.42%.