Greece’s borrowing costs have become noticeably lower than those of the United States, particularly following last week’s downgrade of the U.S. credit rating by Moody’s rating agency.
Market analysts highlighted that this trend underscores the fiscal discipline Greece has achieved. They also noted that the U.S. still holds the second-highest credit rating and has the potential to recover in the near future.
During today’s trading session, the yield on the U.S. 30-year bond surpassed the 5% mark, according to data from Tullett Prebon, having dropped by about half a percentage point over the past fifty days. This marks the highest yield since late 2023, influenced by Moody’s concerns over significant U.S. budget deficits and the additional strain expected from the Trump administration’s plans to extend previously enacted tax breaks.
Conversely, Greece’s 30-year bond yield closed last week at 4.26%, meaning the country’s long-term borrowing costs are approximately 0.8 percentage points lower than those of the U.S., down from a 0.3-point gap earlier in April.
It’s worth noting that Greece already enjoys more favorable borrowing terms compared to Washington when it comes to 10-year bonds. The yield on the Greek bond was recorded at 3.45% last week by the Bank of England, while the U.S. equivalent is significantly higher at 4.45% as of today.
The government has consistently emphasized that its economic planning is grounded in the country’s fiscal strength, ensuring that Greece maintains the market credibility it has worked hard to regain.
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