International bond markets were relatively stable in April. Prices rose marginally from the levels of the previous month, reflecting investor views that the economic growth rate would be lower than previously expected and, therefore, monetary policy would remain unchanged for longer than originally anticipated by financial markets. Indeed, the European Central Bank and the Federal Reserve have left interest rates unchanged.

In the Greek electronic market (HDAT) prices advanced moderately, in line with developments in the other European bond markets, leaving the average yield spread of the 10-year benchmark bond over Bunds unchanged at 34 basis points (bps).

More specifically, the 15-year bond maturing on 11.1.2014, recorded the highest price gain (99 bps, from 107.00 at the end of March, the price rose to 107.99 at the end of April), while the new 3-year bond the smallest gain (29 bps, from 100.01 to 100.30 respectively). The 10-year benchmark bond closed at 98.36 (yielding 5.47%) at the end of April from 97.47 (yielding 5.58%) at the end of March.

The yield curve steepened, moving slightly downwards in April, reflecting the correction in investor expectations regarding future monetary policy changes. The 3- to 20-year yield spread widened to 129 bps at the end of April from 124 bps at the end of March.

April turnover on HDAT exceeded EUR 38 billion, marginally higher than the previous month (EUR 37.3 billion). Investor interest focused on maturities lower than 10 years, covering 72% of the total transactions, of which 46% concerned purchases and 54% sales. Among the individual bonds, the new 5-year bond (maturity 19.4.2007) was the most actively traded, attracting 9.41% of the total HDAT turnover, followed by the 10-year benchmark (maturity 18.5.2012), with 8.34% of the total. Overall, in April 7,284 orders were executed on HDAT up from 3,584 orders (EUR 18 billion) in April last year.