Greek bond yields fall on expectations of December 5 agreement

Greek state bond yields shrank on Friday as the market reacted positively to European officials’ comments on expectations of a successful completion of the second review of the Greek bailout program.

Thomas Wieser, head of the Euroworking Group, told Bloomberg news agency that Greece and the institutions could pave the way in December for discussions on a debt relief. “I am very optimistic that we will be there by the end of the year and that we will have a relatively smooth course in the remaining of the program,” Wieser said.

The Greek bond maturing in April 2019, carrying an annual coupon of 4.75 pct, yielded 6.9 pct on Friday, down 32 basis points from 10 pct in September.