Greek 10-year bond yields have reached their lowest in five years, indicating faith in the country’s latest bailout agreement.
Editor’s Remarks: The country’s benchmark yield has rallied significantly over the last year, now standing at 5.49% as of yesterday – well below its 27% peak in June 2012. The recent improvement can largely be put down to the latest developments in Greece’s difficult talks with creditors over the bailout, after the reforms needed to unlock a further €6bn emergency loans were successfully legislated by the ruling Syriza party. Given that the vast majority of Greece’s outstanding bonds are owned by its creditors in the EU, Emmanuel Macron’s recent victory in France’s presidential race will have also played a role by allaying insecurity over eurozone debt.
What to Watch: European Central Bank, International Monetary Fund, Alexis Tsipras, Mario Draghi, Christine Lagarde