ECONOMY

Greek bond bull run may be overdone

Greek sovereign bond yields tumbled to their lowest levels since the country’s debt restructuring this week, but with markets trading on technicals and potentially destabilizing events up ahead, there is little cause for celebration yet.

Hedge funds that have taken hefty stakes in Greek government bonds now face a nerve-racking couple of months as Greece’s creditors debate how to provide further support to the fragile economy.

“I think some people are getting ahead of themselves, and the big question is how sustainable are these recent moves at the current time given there still needs to be a solution to Greece’s funding problems,» said Sohail Malik, manager at ECM Asset Management’s special situations fund.

[IFR]