The discount on Greek government bond yields relative to those of Italy widened to its highest level since at least 1999 after the prime minister secured an election victory, underlining investors’ growing perceptions that Athens is now less risky than Rome.
The yield on 10-year benchmark Greek debt dipped by more than 0.15 percentage points to 3.85 per cent on Monday as markets responded positively to the result, which left Kyriakos Mitsotakis’s party just four seats short of the 150 needed for a parliamentary majority. A new vote is set for next month. Yields fall as prices rise.
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