Greece repaid €450m it owed to the International Monetary Fund yesterday, sending bond yields sliding as investors showed relief at the country meeting its latest debt deadline.
Yields on the country’s shortest dated notes declined, with three-year bonds declining 54 basis points to 20.08 per cent and five-year bonds falling 30bp to 14.98 per cent. The 10-year yield, which moves inversely to its price, slipped 18bp to 11.03 per cent.
A central bank official confirmed that the payment to the IMF had been made. Alexis Tsipras, prime minister, had warned last month that Greece would not be able to pay both its international creditors and social welfare payments without urgent financial assistance from its eurozone partners.