Greek short-term bond yields fall after Eurogroup agreement

Greek short-term benchmark bond yields fell by more than one percentage point to 8.15 pct on Tuesday, the lowest level in three weeks, after Monday’s agreement in a Eurogroup meeting for the return of the institutions to Athens.

Eurozone bond markets were nervous on Tuesday amid a combination of political concern in France, data showing a strengthening economic growth in the Eurozone and progress in talks to complete a second review of the Greek program.

German short-term benchmark bond yields fell to new record lows, with analysts stating that investors put their money to one of the safest assets in the Eurozone ahead of the French general elections. Investors are concerned over the prospect of a election victory by Marine Lepen as latest polls showed a shrinking gap with their centrist rivals.

The yield spread between the two-year French and German bonds surpassed 40 basis points -the highest since 2012.

The yield of the 10-year French bond grew by around six basis points to 1.10 pct.