Investor Bets on Greek Debt Send Yields to Record Gap With Italy
- Traders rush to scoop up Greek bonds after Sunday’s election
- Bond performance shows market is betting on investment grade
The Greek parliament building in Syntagma square in Athens.
Photographer: Konstantinos Tsakalidis/BloombergThis article is for subscribers only.
While all the world is fretting over a potential default in the US, a country at the center of Europe’s debt crisis a decade ago is staging a remarkable rebound.
Greece’s election results this week have spurred so much optimism among investors that they are now willing to grab the nation’s bonds for much lower yields than they get in Italy and not far off US Treasuries in nominal terms.