Bond yields reaching EU average

Greek bond yields have fallen fast and currently the 2- and 10-year-bonds are trading at around the European average, 3.31% and 3.8% respectively.

Since the European Central Bank (ECB) started raising its rates to fight inflation, Greek borrowing costs have dropped by almost 10%, even as other eurozone members have seen their own inching upward.

The 2-year Greek Treasury bond’s yield (3.31%) is exactly equal to the one issued by ECB in July to fund the Recovery and Resiliency Fund. It is lower than Italy’s (3.70%) and Spain’s (3.43%) and pretty close to France’s (3.20%) and Germany’s (3.13%).

It is true that these bonds are not highly liquid, and part of the issue was exchanged with the 15-year-old bond issued by the Public Debt Management Agency, but it is still a sign that Greek bonds are considered safe investments.