Political fears ruin Greece’s market honeymoon, reports CNBC

The cost of borrowing in Greece has risen significantly this week, CNBC reports

Greek bonds might be the “top performer out of all global equity and bond classes”, as Bank of America Merrill Lynch has stated, but the political uncertainty has increased Greece’s cost of borrowing.

The cost of borrowing in Greece has risen significantly this week since the “political uncertainty and fears that next year’s draft budget will not be approved by the country’s international creditors have returned”, as CNBC mentions to its recently published article.

“While nowhere near the dizzyingly high levels that sent the country to ask for an international bailout in 2010, yields on 10-year sovereign Greek debt hit 6.284 percent on Wednesday—the highest level since August 13,” the article mentions adding that the yields remained elevated yesterday at 6.123% and that spreads on Greek 5-year CDS continued widening.

According, though, to Bank of America Merrill Lynch, the Greek bonds have gained about 44% over the last year, achieving the best performance in the world.