Greek bond yields buck the rising trend

Eurozone government bond yields were mostly higher on Tuesday as investors focused on a likely hawkish shift from the US Federal Reserve at its policy meeting, which ends today.

Major central banks are due to meet this week, including the Fed and the European Central Bank, to assess the risks posed by the Omicron coronavirus variant and to decide how and when to reduce pandemic emergency measures put in place nearly two years ago.

Most Southern European bonds outperformed, with yields rising less than their higher-rated peers in a sign that the ECB was expected to remain supportive even when its bond purchases slow.

Greece’s 10-year government bond yield actually fell 4 basis points to 1.32%. [Reuters]