Back
29 Dec 2014
Greek 3-yr note yield rises to record high
FXStreet (Mumbai) - The uncertainty surrounding the presidential voting in Greece today has pushed the 3-yr Greek not yield to record high of 11.17%.
The Parliament has failed to elect the President on past two occasions, while the early indications ahead of the today’s vote suggest all key votes are going away from Dimas, who needs to secure 180 votes to be elected president and prevent snap general election that could imperil Greece’s bailout. However, as early indications suggest, the snap election seems unavoidable.
Moreover, markets fear that the snap election may see the anti-austerity, radical leftist Syriza party comes out on top. This could derail the Greek bailout program and bring the debt crisis back to the center stage.
The bond yield curve in Greece is inverted – short-end yields are higher than the ones at the long end. The 3-yr yield is currently hovering around 11.028%, while the 10-yr yield is at 0.8625%.
The Parliament has failed to elect the President on past two occasions, while the early indications ahead of the today’s vote suggest all key votes are going away from Dimas, who needs to secure 180 votes to be elected president and prevent snap general election that could imperil Greece’s bailout. However, as early indications suggest, the snap election seems unavoidable.
Moreover, markets fear that the snap election may see the anti-austerity, radical leftist Syriza party comes out on top. This could derail the Greek bailout program and bring the debt crisis back to the center stage.
The bond yield curve in Greece is inverted – short-end yields are higher than the ones at the long end. The 3-yr yield is currently hovering around 11.028%, while the 10-yr yield is at 0.8625%.