Bond yields slide on good news from Brussels


Italian, Spanish, Greek, Portuguese, Polish and Hungarian government bonds rallied, after European Union leaders sealed a 750-billion-euro post-pandemic recovery plan, reflecting that the countries will be allocated some of the largest amounts from the new fund when scaled to the size of their economies.

The Greek benchmark 10-year bond yield dropped by over three basis points on Tuesday to 1.125 percentage points.

“It’s a significant step towards a more integrated and united Europe, which should boost the region’s appeal to global investors and facilitate its re-rating,” said Barclays’ head of European equity strategy Emmanuel Cau. [Reuters]