Greece Begins Buyback as Merkel Floats Write-off Prospect

Greek buys rally after buyback is announced.

Greece offered 10 billion euros ($13 billion) to buy back bonds issued earlier this year as the bailed-out nation attempts to cut a debt load that may threaten future international aid.

Greek bonds rallied after the so-called modified Dutch auction was announced today by the Athens-based Public Debt Management Agency. PDMA offered an average maximum purchase price for bonds maturing from 2023 to 2042 of 34.1 percent of face value and an average minimum of 32.1 percent, based on information in the statement. The offer runs until 5 p.m. London time on Dec. 7.

Bonds Rise

Greek bonds rose for a third day, pushing the 10-year yield below 15 percent for the first time since the nation’s debt was restructured in March. The price has more than doubled since a post-restructuring low of 13.3 percent on May 31.

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