ATHENS: Greece bond yields fell on Monday as hopes grew of a speedy wrap-up to talks on a new 86 billion euro bailout designed to keep the country from financial collapse and in the euro.
In a week where top-tier economic data and new debt sales from euro zone countries is sparse, focus was back on Greece, which according to an official hopes to conclude negotiations with international creditors by early Tuesday at the latest. This could see the release of cash to enable Athens to repay 3.5 billion euros to the European Central Bank due on Aug. 20.
Greek two-year yields were down 43 basis points at 20.69 percent with 10-year yields 12 bps lower at 11.77 percent. The 10-year yields have tumbled off highs around 19 percent hit in early July when a standoff in talks between Greece and its international creditors took the country to the brink of financial ruin.
The optimism around Greece had little impact on other southern European bond markets, with Italian and Spanish 10-year yields edging 1.5 basis points up to 1.85 percent and 1.999 percent on some profit-taking after the market’s sharp rally on Friday on falling oil prices.
