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Greece bounces back to bond market with 3.0-bn debt sale

Bailed-out Greece returned to bond markets with a bang on Thursday after a four-year exclusion, raising 3.0 billion euros and sending a major signal that the eurozone debt crisis is fading. "The Hellenic Republic today announces that it has agreed to sell a five-year bond in a principal amount of 3.0 billion euros with an annual coupon of 4.75 percent," the finance ministry said in a statement. "Demand for the bonds was very strong. The participation of long-term investors outside Greece is expected to approach 90 percent," it added.

Eurozone outlook brighter on better German forecasts

The outlook for the crisis-battered eurozone brightened Thursday as Germany's leading economic think tanks raised their growth forecast for Europe's top economy this year and next year. Greece, one of the hardest-hit euro members, also returned to the debt markets for the first time in four years, raising 3.0 billion euros ($4.1 billion) in a landmark five-year bond sale. Throughout the long crisis, the German economy has managed to escape with only a few bruises.

Eurozone outlook brighter on better German forecasts

The outlook for the crisis-battered eurozone brightened Thursday as Germany's leading economic think tanks raised their growth forecast for Europe's top economy this year and next year. Greece, one of the hardest-hit euro members, also returned to the debt markets for the first time in four years, raising 3.0 billion euros ($4.1 billion) in a landmark five-year bond sale. Throughout the long crisis, the German economy has managed to escape with only a few bruises.

European stocks dip despite Greek bond market return

European stocks fell on Thursday as investors shrugged off a successful return to the bond markets by Greece four years after the country was rescued with a bailout. In late morning deals, London's benchmark FTSE 100 index slid 0.10 percent to 6,629.35 points, as caution also set in before the Bank of England's latest interest rate decision. Frankfurt's DAX 30 retreated 0.34 percent to 9,473.89 points and in Paris the CAC 40 index lost 0.38 percent to 4,426.00 points compared with Wednesday's closing values.

Italy's borrowing cost at record low on 12-month bonds

Italy raised 7.5 billion euros ($10.4 billion) on Thursday in a sale of 12-month bonds with the rate falling to a record low of 0.589 percent, the Bank of Italy said. The rate at a similar auction on March 12 was 0.592 percent, the central bank said in a statement. Demand was 1.36 times higher than the offer and the amount sold was the maximum planned, it added. Italy's borrowing costs have fallen drastically in recent months amid increased investor confidence, allowing Prime Minister Matteo Renzi's new government to save money on interest payments from the budget.

Greece bounces back to bond market with 3.0-bn debt sale

Bailed-out Greece returned to bond markets with a bang on Thursday ending a four-year exclusion, raising 3.0 billion euros and sending a major signal that the eurozone debt crisis is fading. "A sum in the order of 3.0 billion ($4.1 billion) euros will probably be raised," government spokesman Simos Kedikoglou told To Vima radio, adding that the interest rate was "below 5.0 percent." The bonds have a life of five years, and this return to the medium-term debt market is a milestone for Greece which is in recession and suffering deeply from the effects of crisis and reforms.

China says no major stimulus planned; March trade weak

By Aileen Wang and Adam Rose BOAO/BEIJING (Reuters) - Chinese Premier Li Keqiang ruled out major stimulus to fight short-term dips in growth, even as big falls in imports and exports data reinforced forecasts that the world's second-largest economy has slowed notably at the start of 2014. Li stressed on Thursday that job creation was the government' policy priority, telling an investment forum on the southern island of Hainan that it did not matter if growth came in a little below the official target of 7.5 percent.

IMF still worried about global fiscal, financial risks

Six years after a wave of financial destruction crashed through the United States and then Europe, risks, some old and some new, still challenge the global economy, the IMF says. In reviews of global fiscal and financial sector stability released Wednesday, the International Monetary Fund said gains had been made to repair budgets in advanced economies, and to shore up banking systems. But governments remain highly in debt, and emerging economies are starting to pile up risky deficits.

Fed's Tarullo sees little need for rapid U.S. rate hikes

By Jonathan Spicer WASHINGTON (Reuters) - The modest pace of U.S. economic growth in recent years suggests that when the time comes to raise interest rates the Federal Reserve will be able to do so gradually without fear of a sudden surge in inflation, a top Fed official said on Wednesday. Many economists, both at the Fed and outside, had expected the economy to roar back after the Great Recession, requiring a rapid tightening of policy at some point, Fed Board Governor Daniel Tarullo told a dinner forum in Washington, D.C.

Fed's hard line on funding to bring more pain to Wall Street

By Emily Stephenson and Lauren Tara LaCapra WASHINGTON/NEW YORK (Reuters) - The U.S. Federal Reserve's drive to wean Wall Street off risky funding sources is expected to bring more financial pain to the biggest U.S. banks in the coming months, analysts warned on Wednesday. They said bank regulators' release this week of tough new limits on debt funding is just a preview of other rules that may have even more bite.
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