ECB buys Greek state bonds, yields fall sharply

The Bank of Greece on Thursday purchased on behalf of the European Central Bank (ECB) state bonds worth around 150 million euros in the domestic electronic secondary bond market, as part of an ECB Pandemic Emergency Purchase Programme worth 750 billion euros that began being implemented throughout the Eurozone.

This intervention pushed state bond yields sharply lower with the 10-year bond yield falling to 1.54 pct from 2.41 pct, the five-year bond yield was 1.15 pct from 1.81 pct and the 15-year bond yield fell to 1.61 pct from 2.37 pct.

The yield spread between the 10-year Greek and German benchmark bonds eased to 2.32 pct from 2.74 pct on Tuesday. Turnover was 24 million euros of which 18 million were buy orders.