Greek bond yields hit historic lows

The strong rally recorded by Greek bonds in the last few weeks continued on Wednesday with the yield of the benchmark 10-year paper dropping to a new historic low, just above 2 percentage points. This was thanks to the push from the candidacy of Christine Lagarde for the chair of the European Central Bank, which led many sovereign bond yields in the eurozone to record lows.

Greek securities, including local stocks, have also benefited from the prospect of a political shift after Sunday's election that traders have long taken for granted. As Eurasia Group noted in a new report on Wednesday, the outright majority of New Democracy - which it considers highly likely - will constitute a positive signal for the markets, as ND leader Kyriakos Mitsotakis has pledged to cut taxes, improve the business environment to attract foreign investments, and speed up the restructuring of the...