Greece to issue new 10-year government bond a day after announcing new austerity cuts

Greece to issue new 10-year bond through 5 banks

ATHENS, Greece — Greece has appointed five banks to handle a new 10-year bond issue that will come due on 19 June 2010.

The country’s Public Debt Management Agency named Barclays Capital, HSBC, National Bank of Greece, Nomura and Piraeus Bank as lead managers for the bond issue.

The sale will be watched closely by financial markets to gauge the depth of Greece’s debt crisis. The announcement comes a day after debt-ridden Greece detailed new austerity measures, including salary cuts for civil servants, pension freezes and tax hikes.

Greece plans to borrow some €54 billion ($7.4 billion) through sovereign debt issues this year, and has so far raised around €13 billion ($18 billion), including treasury bill sales.