Investors were snapping up Greek assets on Monday after Moody’s two-notch upgrade on the country’s sovereign debt rating late on Friday.
Yields on the country’s sovereign debt have touched 12-year lows, with brightening banks stocks making the Athens General the best performing stock index in Europe.
The rating agency pointed to the country’s reform programme as it lifted Greece’s rating to B1 from B3, saying it was “firmly entrenched”, and “starting to bear fruit”, adding:
The track record of strong fiscal performance is now firmly established and is likely to be sustained, as most of the fiscal improvement is due to structural measures.
The ringing endorsement reverberated around markets and as investors bought into 10-year Greek debt. The yield fell to its lowest level since early 2006, down 3.3 basis points on the session to 3.609 per cent.
The Athens General added as much as 1.5 per cent in early Monday trade, a six-month peak, outrunning a 0.4 per cent gain for the Europe-wide Stoxx 600.
Banks crowded to the top of the leaderboard, with Attica Bank up almost 6 per cent and Bank of Pireaus up almost 5 per cent.
Get alerts on Greek economy when a new story is published