LONDON: Yields on 10-year Greek bonds yielded less than 30-year paper for the first time since late 2013 on Thursday, as investors' fears ebb that they might not get all their money back.
An improved outlook on Greece's economy and an easing euro zone debt crisis has driven Greek yields to their lowest since the country's debt was restructured in March 2012. "In general, the story around Greece is clearly improving.
There's indications of momentum within the economy.
The primary surplus has come through earlier than anticipated," said Mark Wall, chief euro area economist at Deutsche Bank. "You've had the signals from the EU that they'd be willing to sit down and talk about debt relief, albeit later in the summer.
So there is a positive backdrop that continues to significantly influence Greek asset markets." Greek 10-year yields slid 20 basis points to 6.66 percent on Thursday while 30-year yields were 13 bps down at 6.68 percent, moving the curve back to a more normal upward slope.
The fact that 10-year bonds have been yielding more than longer-dated ones, inverting the yield curve reflected investors' concerns they may not get all their money back.
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