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Greek borrowing cost drops lower than Italy's for the first time since 2008

Featured Greek borrowing cost drops lower than Italy's for the first time since 2008

The yield spread between the Greek and Italian state bonds fell to negative territory for the first time since 2008, meaning that the Greek state borrows cheaper than Italy in capital markets.

The 10-year Greek benchmark bond yield fell to 1.21 pct while the 10-year Italian bond was 1.23 pct, leading the yield spread to -2.4 basis points from 1.7 pct in the start of the year.

The five-year bond yield was 0.41 pct, slightly up from 0.398 pct the previous day. Turnover in the market was a strong 50 million euros, of which 14 million were buy orders.

In interbank markets, interest rates were mixed. The 12-month rate was -0.274 pct, the six-month rate was -0.337 pct, the three-month rate was -0.406 pct and the one-month rate was -0.423 pct.