Greeks are working longer for less pay, suffering from depression and committing suicide at a record pace, and seeing a mass exodus of young talented workers amid continued capital controls and pension cuts.
So it should be no surprise that Greek government bonds are being bought with both hands and feet by global investors reaching for yield, sparking GGBs to a return of almost 17% year-to-date – the best across Europe – even as concerns linger about the sustainability of Greece’s economic recovery once the current rescue program ends in 2018.
Is this front-running hope for a fruitful review, starting mid-October, of the nation’s financial bailout? Or anticipation of Draghi extending The ECB’s buying program to junk?
Remember, the market is not the economy…