The government is looking to borrow at least €500 in three-year money, with some believing the country could raise up to €3B in this yield-starved environment. The deal is expected to occur tomorrow, and comes after the EU agreed to release the next tranche of bailout funds (€1B) this week.
Greece first returned to the global bond markets in April with a €3B issue of 5-year paper priced to yield 4.95%. Bankers working on the sale reported €20B in orders for notes.
Some are skeptical. "There hasn't been a sufficient improvement in Greece's fundamentals; it is purely the liquidity backdrop and the hunt for yield that is allowing them to access the market," says U.K. credit strategist Ben Bennett. "It is a sign of just how crazy and irresponsible the current market situation is."