The yield on Greek 10-year bonds fell below the psychological limit of 4% today after about six months.

In the afternoon, 10-year Greek bonds traded at a yield of 3.96%, while, for example, the yield of the corresponding Italian bonds was 4.14%.

The rise in Greek bond prices in the week leading up to the election, while the prices of most European bonds were declining, suggests that the so-called political risk is not affecting the market.

In addition, markets are discounting that the ECB’s key interest rate will rise another 0.5% to 3.75% as the central bank’s current forecast suggests that inflation will fall below 3% in the last quarter of the year.

Thus, according to market participants, the positive dynamics of the domestic bond market, according to market participants, shows that investors are not afraid of the possibility of a fiscal crash the day after the election. A positive surprise was already the achievement of a primary surplus in the budget compared to last year.

In addition, the decline in yields seen over the last period and peaking today reflects investors’ expectation of the Greek economy being upgraded to investment grade by the rating houses, apparently after the elections.

There was strong buying interest in the domestic market, and in particular in the Bank of Greece Electronic Transaction System (EDAT), as €102 million worth of transactions were recorded today, of which €98 million were purchase orders.

The yield on 10-year Greek bonds was 3.99% compared to 2.25% on the corresponding German bonds, resulting in a spread of 1.74%. In the foreign exchange market, the dollar moves higher, resulting in the European currency trading at $1.0882 from the market opening of $1.097.

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