Another day, another low for bond yields
Greek bonds have evolved into the perfect refuge for investors amid concerns in the global economy, and into a focus of attention regarding their improvement prospects, leading to the pursuit of Greek returns. Many investors who missed out on last year's rally have noticed the positive outlook and are rushing to jump on the bandwagon ahead of further credit rating upgrades and inclusion in the European Central Bank's bond-buying program (QE).
Another Greek record was smashed on Thursday, as the benchmark 10-year bond yield temporarily dipped below 0.9 percentage points. Eventually it closed at 0.94 percentage points, an all-time low.
Citigroup now estimates Greece may actually manage to join the QE program by the end of this year, as its stronger growth could bring forward the upgrading of the country's credit rating. Citi also noted on Thursday that the change in...