The road that separates Greek from French bonds is not long. The yield on Greek bonds has already fallen below that of Italian bonds. The improvement of the main indicators of the Greek economy and its transfer to the investment grade – a similar decision is expected on Friday from the rating agency Fitch – resulted in the borrowing cost of the Greek State getting closer and closer to that of France.

Today the yield of the Greek 10-year bond fell to 3.63%, against 2.98% of the corresponding French one.

On the other hand, the Italian 10-year bond was trading today at a yield of 4.17%. Wood & Company, in its analysis yesterday, predicts that thanks to the limited financial needs of the Greek State in the coming years, the yields of Greek government bonds will decrease further – and in fact proportionally more than the percentage that would justify the upgrading of the economy – moving close to French bond yields.

In the secondary bond market today, and more specifically in the Electronic Transaction System (HDAT) of the Bank of Greece, transactions of 96 million euros were recorded, of which 54 million euros related to purchase orders.

The yield on the Greek 10-year bond stood at 3.63% from 3.79% yesterday versus 2.42% for the corresponding German bond, bringing the spread to 1.21%.

In the foreign exchange market, the euro is moving higher against the dollar, with the result that in the afternoon, the European currency is trading at $1.0967 from the level of $1.0972 where it was when the market opened.