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Kissed by Mario Draghi, Greece’s sleeping banks rally & bond yields drop

Kissed by Prince Mario Draghi, Greece’s sleeping economy beauty finally woke up: the Athens Stock Exchange rallies at +4%, Banks cheer with +8.14%-24.31% and Greek bond yield went down 20 bps. Reason for this Friday party was the decision of European Central Bank to include Greece’s EFSEF bonds in ECB’s QE shopping list.

Greek bonds rallied, pushing yields lower after ECB spokesperson said Greece’s EFSF bonds are now in ECB’s QE shopping list.

At the time of writing, Greece’s 10-yr bond yield was down 20 bps at 9.181%. 5-yr and 2-yr yields were down 80 bps and 97 bps respectively.

Greece’s European Financial Stability Facility (EFSF) bonds will now be bought by ECB under QE, although normal debt paper is still not included.

Earlier today yields were on the rise as angst rose among investors about the delay in Athens bailout package.

The ECB’s decision is understood as a sign that Greece-creditors Review talks head towards an agreement.

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PS good to know that Greece and creditors will agree to impose another €5.4-billion austerity for the next three years. – If it wasn’t this VAT hikes and the new taxes and …

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