The current environment is the most favorable in several years for the Greek state for funding from the markets, analysts say, thanks to the strong rally of state bonds, the high investor demand, the return of major and quality portfolios to Greek issues and the upgraded mood about Greece. Therefore Athens has already started contacts for new bond issues.
Straight on the heels of a Greek 10-year bond issue with a record low one percent yield (compared to 45 percent one decade ago), Bloomberg is singing the praises of the prospects of the Greek economy and government and touts the once unthinkable possibility of Greek bonds returning to investment grade (even though they are still at the junk level).
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
Greek Prime Minister Kyriakos Mitsotakis and the foreign press hailed the record-breaking yield for the 10-year benchmark bond, which on Wednesday's domestic electronic secondary bond market fell below 1 percent.
In a tweet on the prime minister's account, Mitsotakis said that "Greece is now on a growth trajectory," making the country a "great opportunity for global investors."
Greece's benchmark 10-year government bond yield fell below 1 percent for the first time on Wednesday, marking a milestone for a country bailed out three times in the last decade.
The Greek 10-year bond yield fell to as lows as 0.992 percent, Tradeweb pricing showed GR10YT=TWEB, dropping below 1 percent for the first time ever.
Greek government bonds are continuing their impressive performance, and are at the top of many international firms' investment lists. They have extended their strong rally that last week brought yields to new historic lows as that of the benchmark 10-year paper dropped to just 1.05 percentage points at Friday's closing.