Although the yield of the Greek ten-year bond has dropped to 8.6% and the yield of the two-year bond has dropped to 10.3% – namely to the pre-January election levels – foreign investors do not seem to be enticed.
According to a Reuters article, international investors are wary as they are concerned about the political uncertainty in the cash-strapped country. Additionally, the chance of a default has not yet eclipsed.
With snap elections called for the 20th of September, many foreign investors believe that a grand coalition or even a return of New Democracy to power may boost confidence in Greek bonds.
