The yield on Greece’s benchmark 10-year bond dropped below 2 percentage points for the first time ever on Wednesday, as Greek securities have continued to gain ground since the May 26 European ballot that brought about the resignation of the previous government in Athens.
Greek bonds have become a choice pick among investors who foreign media say expect Greek yields to drop to levels below those of US notes. The Greek bond rally has also been strengthened by the favorable climate internationally regarding state bonds and market expectations of an imminent Greek rating upgrade.
The 10-year bond yield fell 2.6 percent on a daily basis on Wednesday to 2.006 percentage points, having dropped as low as 1.99 percent during the day. The US bond yield stood at 2.046 percent.
Greece’s five-year bond yield also fell to a historic low of 1.036 percentage points, shedding 4.4 percent from Tuesday, while the new seven-year paper, issued last week at a yield of 1.9 percent, was trading at 1.578 percent on Wednesday.