The winners were the Greek, Spanish and Italian bonds from this year’s turbulence in the bond market, as the upward trend has limited the difference with German borrowing costs almost to the lowest levels of the last decade, as the Financial Times notes.

Capital of bond managers said that the overthrow from the Eurozone debt crisis, when these countries were confronted with high borrowing costs, was due to the strongest of the expected growth and the increased solidarity in the distribution of debts between the Member States.

Italy now pays only 0.9 percentage points over Germany for a 10 -year borrowing, close to the lowest spread of the last fifteen years. Spain is borrowed cheaper than France, the second largest eurozone economy, with a spread below 0.6%.

The rise of German yields, as investors provide for a landmark cost of € 1 trillion. From Chancellor Friedrich Mertz for defense and infrastructure, he also helped reduce spreads.

On the contrary, at the discretion of the eurozone, the spreads in the so -called “region” had been ejected due to worries about unsustainable debt and a possible dissolution of the monetary union.

“The main reason for spreads is the reflection of the risk of bankruptcy or dissolution. After all, this risk has fallen, “said Nicola Mai, a state -owned credit risk analyst at Pimco. He predicted that the convergence of state bond yields “will continue”.

In Greece, the country whose debt problems triggered the regional crisis and led to a number of government rescue programs, spreads have fallen to 0.7 percentage points.

“The rise was uninterrupted,” said Fraser Lundie, head of a world -wide industry in Aviva Investors.

Investors flock to southern European bonds, despite general concerns in the world markets for increased public lending, which has led to rise in major economies such as the US, the United Kingdom and France.

The smaller margin in spreads also reflect a long -term reinforcement of public finances in southern Europe, as well as prosperous economies, assisted by covid tourist boom.

Spain has grown faster than eurozone’s largest economies last year. The Italian government under Georgia Meloni proved more fiscal and stable than investors expected. And Greece enjoys a long -term recovery from the debt crisis that has led to its upgrading its credit rating in 2023.

Investors argue that the common European debt issued during the pandemic, as well as the prospect of further integration, reinforce the view of convergence in borrowing costs.

Some European leaders have promoted the common debt as a means of financing defense commitments, which, from the view of markets, would further close the states to each other. However, other member states have opposed such a step.

An increase in yields from the stimulating measures of the Covid era has also attracted buyers for the debts of southern Europe governments, at a time when Donald Trump’s unstable policies have made investors show cautiously against US markets.

However, some investors warn that high levels of debt in southern Europe mean concerns about these countries’ bonds could eventually reappear. GDP debt rate remains close or even over 100% in Italy, Greece and Spain.