ATHENS – [ANA-MPA]
Monday’s [10/5] session in the government bond market concluded with a slight de-escalation in the yield of the Greek 10-year bond, amidst a particularly nervous European environment.
On the Electronic Secondary Securities Market (HDAT), the Greek 10-year bond yield fell to 4.52% from 4.54% on Friday, outperforming several other Eurozone titles.
The yield on the benchmark German 10-year Bund hovered around 3.49%, as investors sought safety amid growing fiscal and political uncertainty. Consequently, the spread of the Greek 10-year bond against the German bund stood at approximately 102 basis points.
The spread thus remained above the psychological threshold of 100 basis points, while showing slight improvement compared to the end of the previous week.
The Greek market decoupled positively, despite continuing to be affected by rising energy costs, persistent inflation, and expectations of a tighter monetary policy by the European Central Bank.
Support was provided by the country’s fiscal profile, growth prospects, and the fact that Greece now exhibits a lower 10-year borrowing cost than France and Italy.
