Greek 10-year government bond yields hit an eight-year low below 5% on Wednesday, as investors were encouraged by upbeat economic data and a deal struck between Greece and its lenders.
The Greek government and its eurozone creditors reached a preliminary agreement on Saturday on reforms Athens needs to roll out under its bailout programme, a move that could pave the way for the country to leave the aid plan in August.
The yield on Greece‘s 10-year government bond dropped to 4.802% on Wednesday, its lowest rate since November 2009.
Analysts said the fall in bond yields could encourage Greece to come back to the market with new bonds, especially if the yield downward spiral continues.
Most high-grade eurozone bond yields were lower by 1-2 basis points on Wednesday, pushed down by political tension in the United States and a continued flattening of the U.S. Treasury yield curve.