Greek bond yields hit 2-1/2 month lows as Greece seen taking step closer to bailout exit

By Kitco News / April 27, 2018 / www.kitco.com / Article Link

LONDON, April 27 (Reuters) - Greece’s government bond yields hit a 2-1/2 month low on Friday after as euro zone finance ministers said they are set to decide in June on the future steps to help Greece successfully end its current bailout programme.

“The Eurogroup will decide in June all the elements that can help facilitate the Greek exit from the bailout programme,” Mario Centeno, the chairman of euro zone finance ministers said on Friday.

He said Greece did not intend to ask for a precautionary credit line.

Greece’s 10-year bond yield dropped to as low as 3.901 percent, down 3 basis points on the day, 5-year Greek bond yields dropped to 2.993 percent, down 5 bps on day . Both yields were at their lowest since February.

“News that had discussions will begin is positive for Greece and GGBs (Greek government bonds) given that Germany’s finance minister remains the harshest on debt relief and is now open to talks,” said DZ Bank rates strategist Sebastian Fellechner. (Reporting by Fanny Potkin; editing by Dhara Ranasinghe)

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