Greece’s 10-year bond yield jumped to 3.50% amid the global crisis due to the coronavirus outbreak, as uncertainty has returned to investors who are seeing the risks rising considerably.
The value of the 10-year Greek bond rose by 73 basis points today, as the spread notably accelerated after last Thursday, when ECB President Christian Lagarde, during her briefing of the press said it was not the ECB’s job to close the spreads (the difference in returns between core countries and periphery countries).
There was a strong sell-off in the periphery region’s bonds, with the Greek bond market bearing the brunt of the hit.
The negative impact on the Greek government’s ability to take lend from the market is indicative from the fact that only a month ago the yield on the 10-year bond stood at 0.97 compared to the current 3.50. This means that the interest rate for the Greek government is more than tripled if the situation does not improve.
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