Yields steady but QE hopes ‘will get disappointed’

Yields steady but QE hopes ‘will get disappointed’

The yield on Greece’s 10-year bond – an often volatile indication of the cost for the government to raise long-term cash in financial markets – were roughly unchanged on Friday, while two-year yields rose by 22 basis points and five-year yields fell 10 basis points, according to Reuters data.

Greek government borrowing costs hit their lowest level in more than five years on Wednesday as Athens looked set to clinch vital bailout loans from its international lenders.

But there is skepticism on whether it will eventually be added back into the European Central Bank’s bond-buying program as officials mull a return to markets later this year.

“Latest headlines from Greece underpin the impressive rally in [Greek bond prices] but we believe that high hopes for being included in QE will get disappointed,” Commerzbank analysts said in a morning note.


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