The “disturbance” prevailing in the American bond market does not touch the European bonds, let alone the Greek ones.

European bond yields are kept at low levels, while the comparatively greater decline in the yield of the Greek 10-year bond means that the spread (against the corresponding German bond) has fallen to 0.8%. That is at the lowest level since last May.

It is noted that in the American market there are massive liquidations of bonds, which have the effect of depressing their prices, while their yields register a significant rise. It is indicative that the yield of the American 10-year bond has exceeded 4.2%, a development which is linked to the upcoming elections. Analysts attribute the negative climate prevailing in the bond market to the increased chances of the Republican candidate D. Trump’s victory. The political developments combined with the course of the American economy create expectations for a “more aggressive” reduction in interest rates by the Federal Bank of the USA (Fed).

On the contrary, in the Eurozone, the markets are discounting that the ECB will proceed with another reduction in its interest rates, and this one of the order of 0.25%, around the end of the year.

Thus the yield of the German 10-year bond remains in the region of 2.3% and that of the corresponding Greek bond at 3.1%

In the domestic secondary market, and more specifically in the Electronic Transaction System of the Bank of Greece (HDAT), transactions of 115 million euros were recorded, of which 62 million euros related to purchase orders. The yield of the Greek 10-year bond stood at 3.17% against 2.34% of the corresponding German bond, resulting in a margin of 0.83%