The difference in yields on the benchmark 10-year bond stands at 75 basis points, with the 5-year and 15-year maturities recording spreads of 45 and 74 basis points, respectively.
Despite the country's lingering BBB credit rating, Greek bonds continue to trade at competitive levels within the eurozone. Current yields are 3.345% for the 10-year, 3.710% for the 15-year, and 4.201% for the 30-year bond.
Over the past month, Greek government bond yields have shown only modest movement, ranging from zero to 12 basis points. Short-term bonds, with maturities between two and four years, saw minimal increases of 2 to 5 basis points.
Medium- and longer-term bonds, between five and fifteen years, experienced slightly larger increases of 5 to 9 basis points. The 30-year bond recorded the most significant change, rising by 12 basis points, suggesting that investors may be recalibrating their long-term expectations for interest rates or inflation.
Compared to other eurozone countries, Greece’s risk premium is relatively moderate. Italy, for instance, currently records a 10-year spread of 101 basis points—higher than Greece’s. Meanwhile, Spain and Portugal maintain tighter spreads of 62 and 50 basis points, respectively, and France sits at 68 basis points.
What is particularly noteworthy is that, despite a credit rating that lags behind many of its peers, Greece continues to benefit from historically low borrowing costs. This reflects a broader market confidence in the country’s fiscal trajectory. The combination of decreasing financing costs and a stable fiscal outlook has helped insulate Greece from global financial volatility, reinforcing a sense of resilience in the face of external economic pressures.
Looking ahead, PDMA projects that Greece’s general government debt will reach €365 billion by the end of 2025—only marginally higher than the €364.1 billion recorded in 2021. However, the more critical indicator is the debt-to-GDP ratio, which is forecast to drop significantly. From a staggering 197.3% in 2021, the ratio is expected to decline to 147.5% by 2025.
This nearly 50-percentage-point reduction over four years underscores the country’s ongoing efforts to restore fiscal health and improve its standing in international markets.
