Greece bond yield fall as ECB Monetary stimulus in the pipeline

European government bonds rose this week as speculation the European Central Bank will expand monetary stimulus combined with optimism that the region is exiting its sovereign crisis to boost demand for its assets.

Greece’s 10-year yields fell yesterday to the lowest since the nation received its first financial bailout in May 2010.

Greek 10-year (GGGB10YR) yields fell 67 basis points, or 0.67 percentage point, this week to 6.96 percent at 5 p.m. London time yesterday, after declining to as low as 6.76 percent. The 2 percent bond due in February 2024 rose 3.905, or 39.05 euros per 1,000-euro ($1,381) face amount, to 73.85.

The rate climbed to a record 44.2 percent in March 2012.

 Portugal’s bonds rose as the country bought back debt.

Portugal’s 10-year bond yield slid eight basis points to 4.85 percent, the biggest weekly drop since the period ended Jan. 31. The rate fell to 4.78 percent on Feb. 27, the least since June 2010.


Benchmark German 10-year (GDBR10) bunds pared gains yesterday .Germany’s 10-year bund yield dropped four basis points in the week to 1.62 percent, after falling to 1.55 percent on Feb. 27, the lowest since July 24.

 ECB policy makers are scheduled to meet on March 6.