Short-dated Greek government bond yields fell on Tuesday after the euro zone bailout fund approved new loans for the indebted country.
The European Stability Mechanism said it approved the disbursement of 6.7 billion euros in new loans to Greece as part of its current bailout program.
“The euro zone bailout fund is the matter that counts now for Greek bond yields,” said DZ Bank analyst Rene Albrecht, though he also pointed out that Greek government bonds have performed well in recent times.
“It’s been a step by step process and the market is enjoying the high carry it can earn on the Greek bonds,” he said.
Greek bond yields extended their falls on the news, with five-year yields last down around 11 basis points at 3.52 percent.