Investors are buying Greek bonds for their yield, but the bond markets are still heavily in default mode.
With no interest rates on the table, bond investors have taken to buying up Greek bonds to lock in their payments.
The bond market has been a major driver of Greece’s financial crisis and now yields on the bonds are high.
The yield on Greece’s 10-year debt was nearly 4.5% on Sunday, according to data compiled by Bloomberg.
The same day, Greece’s 15-year bond yield stood at 3.3%.
The yields on Greek government bonds have spiked over the past two weeks as investors buy up debt in anticipation of lower interest rates, but Greece has not been able to tap into the capital markets.
Greek government bonds are trading at a discount to the market, and investors are buying at premium prices.
On Monday, the yield on 10- and 15- year government bonds was 4.9% and 3.4%, respectively.
The yields on bonds in the Greek economy were also high at 7.1% and 8.5%.
Greece’s debt has been piling up, and the government has been paying down the debt to raise funds.
Greek government debt has fallen to a record low of 2.3 trillion euros ($2.8 trillion), which is nearly half of the country’s gross domestic product.
Greeks economy has shrunk by nearly 9% over the last year, while unemployment is at almost 20% and inflation is running at over 40%.
The debt is being paid down through tax hikes, but many Greeks are struggling to pay their bills and many are suffering from food shortages.