Greek five year bond oversubscribed

The Greek government has reported that their sale of long term debt was eight times oversubscribed.

Evangelos Venizelos, Greece’s deputy prime minister, said demand for 3bn euros (£2.4bn) worth of five year bonds proved the country’s debt is sustainable.

The sale attracted interest from 550 investors.

This is Greece’s first returning to the capital markets since 2010 when its economy nearly collapsed.

The Greek government had initially priced the bond to provide a return of between 5% and 5.25%.

But with investor orders running at 20bn euros (£16.5bn) it was able to lower the yield to 4.95% – far lower than analysts had expected.