Greek 10-year Bond Yield Falls Below 1% for First Time

Greece’s spectacular bond rally reached another landmark on Wednesday as the country’s 10-year yield dropped below 1 per cent for the first time, the Financial Times reported. Greek borrowing costs have tumbled to record lows this year in defiance of its “junk” credit rating, as investors pile into corners of the eurozone debt market that offer a positive yield. The recent drop in borrowing costs caps a dramatic turnround since the height of the eurozone debt crisis when the country’s 10-year yield spiked above 30 per cent, effectively locking it out of the market. Athens last month attracted bumper demand for a sale of new 15-year bonds — its longest-dated debt since a series of bailouts and a debt restructuring eight years ago. Read more