Greece now has significantly lower borrowing costs than the United States, and at the long-term level, in the wake of last week’s downgrade of its U.S. credit rating by Moody’s rating agency.
Analysts with knowledge of the market noted that the developments show the importance of the fiscal discipline Greece has achieved, while stressing that the US still has the second-highest rating on its credit rating and may well recover in the coming period.
In today’s session, the yield on the US 30-year bond crossed the 5% “barrier”, according to data from Tullett Prebon, falling by about half a point in the last fifty days. This is the highest level since late 2023, with markets reacting to Moody’s notes on deep US budget deficits and the additional burden that will result from the Trump administration’s plans to extend the tax breaks it legislated during its first term in the White House.
On the flip side, the Greek 30-year closed last week at 4.26%, meaning that now the country’s long-term borrowing costs are about 0.8 points lower than the U.S., down from a 0.3-point difference at the beginning of April.
Recall that our country already enjoys significantly better borrowing terms compared to Washington on 10-year bonds. The yield on that Greek security was measured by the BoE late last week at 3.45%, while the equivalent U.S. bond is trading at a much worse level, at 4.45% today.
The government has repeatedly signaled that economic planning is always based on the country’s fiscal strength, ensuring that Greece preserves the credibility it has regained with the markets.
Ask me anything
Explore related questions