Greek bond yields reach landmark lows
The yield on the Greek benchmark 10-year bond dropped below 1 percent for the first time ever on Wednesday, on a day when other bond markets were quite mixed. Piraeus Bank benefited immediately from the yield slide with a very successful bond issue on Wednesday.
All this means that Greece constitutes a risk-free investment for funds and is rated much more highly by the markets than by the rating agencies.
"The constant slide of the interest rate and its maintenance at a low level illustrate the confidence of the markets in the course and the prospects of the Greek economy, as well as the economic policy of the government," Finance Minister Christos Staikouras commented.
The yield on Greece's 10-year bond dropped on Wednesday by 7.5 percent to end up at 0.956 percentage points, while the spread with the German bund reached a 10-year low of just 133 basis points....