Greek bonds close yield gap with French bonds in historic shift

Greek sovereign bonds have reached a historic milestone by closing their yield gap with French bonds. As of late November, Greece's 10-year bonds yield below 3%, matching France's yield, a significant change from the nearly 40 percentage point difference during the eurozone debt crisis. This turnaround is attributed to Greece's fiscal reforms and economic resilience, with a primary budget surplus expected to exceed targets. In contrast, French bonds are under pressure due to political uncertainty and rising deficits, with yields climbing to 2.945%. Greece's improved creditworthiness contrasts with France's ongoing challenges, including a high debt-to-GDP ratio and slow economic growth. Analysts predict Greece's debt ratio will decline, while France's is expected to rise, highlighting the differing economic trajectories of the two countries.