Bond sales wave will not last for long

Last week's sudden wave of Greek government bond liquidation has made quite an impression on traders and experts in the market. It began just 24 hours after the yields on Greek securities dropped below those of Italian bonds for the first time since January 2008.

The yield of the 10-year benchmark bond exceeded 1.55 percentage points on Friday, before settling at 1.47 percentage points at the end of the trading week, whereas just a few days earlier it had registered an all-time low of 1.155 percentage points. That means that the cost of borrowing soared 34 percent for the Greek state in a very short period of time.

Analysts tell Kathimerini that the reaction of numerous investors to that milestone achieved by Greek bonds in relation to Italian debt was quite logical, especially since the international bond market has been experiencing a strong sell-off for more than...