Bonds rise for the first time in 10 days

Greek 10-year yields fell from near the highest since September 2013 after Finance Minister Gikas Hardouvelis said a deal with creditors was possible in January if Parliament elects a president this month.

The rate tumbled 34 basis points to 8.81 percent. The rate on three-year bonds declined 87 basis points to 10.26 percent after reaching a record 11.13 percent last Friday.

Ten-year yields surged 192 basis points last week, the steepest climb since the height of the euro-area debt crisis, after Prime Minister Antonis Samaras said he would bring forward the selection of a head of state. That sparked concern it would usher a general election at a time when anti-austerity SYRIZA party leads in polls.

“It’s not that everything is fine there but it’s slightly less bleak than it had been for most of last week,” Commerzbank’s Rieger said. [Bloomberg]