Greek Bonds Resurgent as Yield-Hungry Traders Swayed by Politics
- Five-year yields drop below those on Italian securities
- Greece is facing a snap election in July after EU vote result
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Greek debt may no longer be Europe’s bogeyman.
Yields on the country’s 10-year bonds dropped below 3% for the first time on record, while those on five-year securities dropped below their Italian peers, a sign of the diverging fortunes of the two nations. Italy has replaced Greece as the target for concern about European political risk, meaning Athens has benefited more from demand for higher returns in a low-yield environment.