UBS notes reduction in Greek bond yields

Swiss lender UBS noted in a statement on Tuesday that yields on the 10-year Greek bond fell to levels that almost matched US Treasuries after voters returned the center-right New Democracy party to power.

"Greek government bonds have performed well this year. We think the political outlook as well as the government's large cash buffer should remain supportive," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

"However," he added, "Greek bonds continue to be sensitive to global economic uncertainty, the outlook for monetary policy, and broader European political risks."