Greek bonds suddenly emerge bright on investors’ radar, combining higher yields within Eurozone stability
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…”
You may be interested
Alternate Foreign Minister Varvitsiotis: Significant tension between Greece and Turkey if Hagia Sophia turned into MosquePanos - Jul 03, 2020
Α possible Turkish government’s decision turning Hagia Sophia into a mosque would signal a significant tension in the Greek-Turkish relations…
Greece: E-governance Min. Pierrakakis outlines digitization progress at online e-conferencePanos - Jul 03, 2020
Digital Governance Minister Kyriakos Pierrakakis outlined the key steps so far taken under the government’s digital transformation policy, while speaking…
Incoming flight passengers total 21.000 at Athens International on reopening day of all Greek airportsPanos - Jul 03, 2020
Some 21,100 passengers and 55 international flights arrived at Athens International Airport on July 1, the first day of the…