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Why Greece is selling new bonds at ‘risk-free’ levels akin to U.S. Treasurys

Joy Wiltermuth
Why Greece is selling new bonds at ‘risk-free’ levels akin to U.S. Treasurys

Greece is borrowing about €2.5 billion euros in the international debt markets this week by selling seven-year bonds at a yield of 1.9%, according to Bloomberg report. The bonds sale comes on the heels of an election that installed a new government led by Prime Minister Kyriakos Mitsotakis, sparking hope that Greece can finally turn the page on a decade of debt woes. “Some have argued that the Greek yield is a result of better economic conditions in Greece,” Mark Grant, chief global strategist at B. Riley FBR Inc. wrote on Tuesday in a note to clients.