Greece's sovereign bonds gain resilience as fiscal discipline lowers borrowing costs

A new study by the Office of the Budget of the State in the Greek Parliament finds that Greek sovereign bonds have become significantly more resilient to global market shocks. After peaking at yields above 7% in 2016, the ten‑year bond yields fell to 2024 levels comparable with Italy and Portugal. The improvement is attributed to sustained fiscal consolidation – a steady reduction of public debt relative to GDP, continued primary surpluses and accelerated structural reforms that have restored investor confidence.

The research, which analysed daily yields of ten‑year bonds across ten eurozone economies from 2016‑2026, warns that the progress is conditional. Maintaining low borrowing costs will require ongoing fiscal discipline and further reforms; any relaxation could see costs rise again. The study stresses that the current favourable positioning of Greece is not permanent but the result of deliberate policy actions.