Greek bonds unaffected by extension of pre-election period

Political developments after the railway tragedy have certainly moved onto investors' radar, however, they are not seen as a risk on the bond market, as yields have stayed put.

Moving the elections to May instead of early April, with the second polls expected in the summer, increases the time of the pre-election period.

For the bond market, however, the reading has not changed for Greece. This means that, for the time being, investors are not worried about a political reversal that would derail fiscal policy and reforms, whether there is single-party or coalition government after the elections. They still expect Greece will regain investment grade after the polls.