Bonds continued to rise today, as investors discount the recovery of the country’s investment grade, even though the ECB is, according to all indications, to proceed with another interest rate increase on Thursday.

As pointed out in an analysis by Piraeus Bank, both the Credit Default Swaps (CDS) market and the government bond market appear to have already discounted the change to investment grade.

Specifically, in the quarter of April – June, a strong upward movement was recorded with the yield of the reference 10-year bond decreasing by 53 bps (basis points) to 3.67%, the lowest level since the end of 2022. Specifically, the fall in bond yields was also accompanied by a significant decrease in the spread (spread) between the Greek 10-year and that of the German 10-year which recorded quarterly down by 66 bp reaching 128 bp at the end of June.

In addition, the “fair” value for the level of the spread according to the development of the macroeconomic data of the two countries was limited to 147 bps with the risk trending upwards according to the risk balance index and the valuations appearing accurate but to a softer degree.

In the secondary bond market today, and more specifically in the Electronic Transaction System (HDAT) of the Bank of Greece, 184 million euros were recorded, of which 88 million euros related to purchase orders.

The yield on the Greek 10-year bond fell to 3.76% from 3.93% yesterday, against 2.41% of the corresponding German bond, resulting in a spread of 1.35%.

In the foreign exchange market, the euro fell slightly against the dollar, with the result that in the afternoon the European currency traded at 1.12043 dollars from the level of 1.1065 dollars that opened the market.