Ten-year Greek bond yields drop to level unseen since Jan 2010

The European Central Bank’s pledge to keep rates at historic lows for some time has fueled demand for the higher-yielding bonds of some of the bloc’s weakest members.

Yields on 10-year Greek bonds dropped to as low as 5.48 percent, a level not seen since January 2010, while Portuguese equivalents were within a whisker of euro-era lows after dropping 14 bps to 3.24 percent.

These new lows raise the prospect that Greece, which returned to markets in April for the first time since 2010, could soon issue more debt to help to stave off the need for a third bailout, Commerzbank said in a note.