Periphery bonds propped up by Greek optimism – Danske Bank

FXStreet (Edinburgh) - In light of the recent events in Greece, Chief Analyst Lars Christensen, noted the performance of the EU peripheral debt markets.

Key Quotes

“Market sentiment is still driven by the Greek news flow and yesterday sentiment improved further on the news that Varoufakis was put under supervision and that the Greek negotiating team has been shaken up”.

“Consequently, credit spreads tightened throughout the fixed income market with the periphery rallying strongly and money market credits spreads (Euribor-Eonia) tightening”.

“However, the theme will likely continue to weigh on sentiment and we do not expect the parties to reach a final deal before the summer crunch time”.