Bonds hit 16-month high

Greek bonds outperformed their eurozone counterparts considerably on Monday, with the 5-year Greek note even matching Spanish paper, having received a boost from Greece's upgrade by Fitch Ratings on Friday night.

That is because, apart from the fact that Fitch is the fourth rating agency - out of the five recognized by the European Central Bank - to reposition Greece as investment grade (low, "BBB-"), the door for inclusion is simultaneously opened to Greek bonds in most international indexes for the first time since the debt crisis of the 2010s.

This will mean the strengthening of inflows into Greek bonds, which will however become even more intense when Moody's follows Fitch, Standard & Poor's, DBRS Morningstar and Scope Ratings, as it is the only agency that still rates the country at "junk" level. It is worth noting that Moody's and S&P have the lion's share of...