The five factors to determine the course of Greek bonds

Greek bond yields have this year exceeded even the most optimistic forecasts, with the cost of borrowing for the Greek state declining by over 72 percent since the start of 2019.

State bonds in the entire yield curve have reached historic lows, while at a recent treasury bill auction the interest rates slipped to negative territory, leading no less a figure than European Central Bank chief Mario Draghi to qualify it as "a clear success for Greece".

This unprecedented rally in bond prices accelerated after last July's election, with the country risk at near zero. But is there any room for that to continue?

As Sebastien Galy, Senior Macro Strategist at Nordea Asset Management tells Kathimerini, "we expect the rally in Greek bonds to continue and reach the levels of [Italy's] BTPs".

On Friday the yield of the benchmark 10-year bond dropped to 1.23 percent,...