Greece returns to bonds market after bailout exit but financing needs covered

Greece has launched a 5-year bond auction, the first time the country has tapped international capital markets for financing since it emerged from its bailout programs in August. State-run ERT television said the initial guidance for Tuesday's bond sale was a yield of 3.75-3.85 per cent. Authorities are hoping the rate to be as low as 3.5 per cent, raising 2.5 billion euros (USD 2.87 billion).

The government is planning a cautious return to bond markets after Greece ended its third international bailout last summer with a cash buffer aimed at covering financing needs for around two years. The bond sale was ordered following a visit to Athens by bailout inspectors and after the government survived the departure of its junior coalition partner over a disagreement on a deal to normalise relations with Macedonia.