Greek 10-year bond yield below 3pc , spread with Italy at tightest on record

LONDON: Greek 10-year government bond yields fell below 3pc  for the first time on Friday, pushing its cost of 10-year funding to 20 basis points over Italy -- an all time low.

Greek 10-year bond yields dropped seven basis points to an all-time low of 2.98pc  as investors bet on a brighter outlook for Greece ahead of a snap election.

That came as Italian bond yields rose sharply, with the Bank of Italy warning that public debt as a percentage of GDP could rise more than expected.

The Greek/Italian 10-year bond yield gap narrowed to around 20 bps as a result -- its tightest on record.