BUSINESS

Greek securities rise as troika returns

Greek government bonds rose on Monday as the country’s partners were said to be working on the next review of its bailout, while Portugal’s two-year yields dropped to the lowest in more than a month as the nation said it would buy back debt.

Italian bonds fell after data showed euro-area inflation was quicker than previously estimated and German business confidence improved, reducing pressure on the European Central Bank to boost stimulus.

“The underlying picture for peripheral bonds remains positive but of course if you see from where we’ve come, a lot of this positive sentiment should be in the price. Cautiousness is the message from here,” said Piet Lammens, head of research at KBC Bank NV in Brussels.

Greek bonds advanced as European Union spokesman Simon O’Connor said the troika comprising the International Monetary Fund, the European Commission and the ECB resumed work on Monday in Athens on their next review of the nation’s aid package.

Greece’s 10-year yields declined 14 basis points to 7.49 percent after dropping to 7.33 percent on February 17, the lowest since May 2010. [Bloomberg]

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