The spread on Greek 10-year bonds has reached a five-year low against German bonds today.
As of the closing of the BoE’s Electronic Market (EDAT), the spread stood at 0.42%.
President Trump’s decision to extend the suspension of retaliatory tariffs in the EU until July 9 has positively impacted peripheral bonds and high-risk investments. Meanwhile, German bond yields rose, decreasing the gap between the two.
To recap, U.S. President Donald Trump has reconsidered his threat of imposing 50% tariffs on EU imports, setting July 9 as the new deadline for a trade agreement between Washington and Brussels.
This announcement led to a mini-rally in European markets, significantly strengthening the euro, which reached its highest level (1.1419) against the dollar since April 30. This development followed assurances from European Commission President Ursula von der Leyen that more time was necessary for negotiations.
It’s important to note that the EU has already faced U.S. tariffs of 25% on steel, aluminum, and automobiles, along with “retaliatory” tariffs of 10% on nearly all other goods, expected to increase to 20%.
In the secondary bond market today, specifically within the Electronic Trading System (ETS) of the Bank of Greece, €60 million in transactions were noted, with €40 million in buy orders and €20 million in sell orders.
The yield for Greek 10-year bonds was 3.35%, compared to 2.93% for the equivalent German bonds, resulting in a spread of 0.42%.
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