Greek bonds suddenly emerge bright on investors’ radar, combining higher yields within Eurozone stability

9 April 2019
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Greek bonds and shares on the Athens Stock Exchange (ATHEX) are again piquing international investors’ interests, according to Bloomberg, commenting on the latest reduction – due to increased demand – in the yield of Greece’s 10-year bond to pre-crisis levels.

On Monday, Greece’s 10-year bond yields reached their lowest level over the past 13 years, as investors interested in staying in the Eurozone are increasingly turning to Athens’ debt, in the wake of nearly zero percent yields offered by other Eurozone member-states, such as Germany.

On its part, a Forbes dispatch underlined that the “…the spread of Greek 10-year debt over Germany at 346 basis points or 3.46% has been regarded as too attractive to ignore. The wave of buying has driven the yield on the Greek 10-year government bond to its lowest level in over 13 years on Monday. Investors are regarding the debt relief afforded by the Eurozone as a safety net.”

The report also asked: “Why buy German debt which yields just 0.01% when one can take Greek debt that appears to have a Eurozone backstop behind it?”

According to Iain Stealey, the CIO of fixed income at JP Morgan Asset Management:

“…We like the Greek story, plus you are getting a spread of 350 basis points over Germany, which is very favorable…”

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