Greek bond yields rise following Eurozone trends

Greek government bond yields have risen over the past three weeks, following broader trends across the Eurozone. According to data from the Bank of Greece, investors are re-evaluating expectations for European Central Bank interest rates due to geopolitical tensions and persistent energy prices fueling inflation concerns.

The yield on the Greek 2-year bond rose to 3.47% from 3.07% three weeks prior, a 40 basis point increase. The 5-year yield reached 3.85%, up from 3.43%, while the 10-year yield climbed to 4.39% from 4.03%. This movement has resulted in a flatter yield curve, with the spread between 10-year and 2-year bonds narrowing to 92 basis points.

Despite these increases, the Greek market has shown relative resilience compared to other Eurozone nations. While the spread between the Greek 10-year bond and the German 10-year bond increased, it did so to a lesser extent than in other markets. For comparison, the German 10-year yield rose to 3.61%, the French to 4.70%, and the Italian to 4.55%.