Greece’s 10-year bonds advanced for a fifth day on Wednesday, pushing the yield to the lowest since the country’s debt was restructured in March, after Athens said it had reached a deal to buy back some of its sovereign securities.
Ten-year bonds pared their gains on concern that optimism over the purchases had pushed prices too high.
The buyback paves the way for European officials to disburse the next tranche of international aid for Greece.
German bunds fell for a third day as demand for the safest assets declined.
Austrian and French 10-year bonds also dropped.
Italian securities climbed as borrowing costs at an auction of one-year bills fell to the lowest in nine months.
“The best time to have got long Greece bonds was ahead of the buyback,” said Padhraic Garvey, head of developed markets debt strategy at ING Groep NV in Amsterdam, referring to a bet an asset will rise.
“From here I’d expect them to drift, most of the rally has happened.”
Greek 10-year yields fell six basis points, or 0.06 percentage point, to 13.15 percent at 7 p.m. yesterday after dropping to as low as 12.46 percent.