Greek 10-year government bond yields fell below 3 percent for the first time on Friday, pushing its cost of 10-year funding to 20 basis points over Italy – an all-time low.
Greek 10-year bond yields dropped seven basis points to an all-time low of 2.98 percent as investors bet on a brighter outlook for Greece ahead of a snap election.
That came as Italian bond yields rose sharply, with the Bank of Italy warning that public debt as a percentage of GDP could rise more than expected.
The Greek/Italian 10-year bond yield gap narrowed to around 20 bps as a result – its tightest on record. [Reuters]