Greek Bonds May Drop After Syriza's Win
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Italy’s 30-year bonds rose, pushing yields down to a record, as the European Central Bank’s newly announced bond-buying plan shielded the securities from contagion after anti-austerity party Syriza won elections in Greece.
While Greek 10-year bonds fell, that move only pared last week’s gains made when the ECB unveiled its quantitative-easing measures. Syriza leader Alexis Tsipras has said he plans to win a writedown of Greek public debt and abandon budget constraints that were imposed in return for aid, while keeping Greece within the euro bloc. His party will form a coalition government with the Independent Greeks. Benchmark German 10-year yields rose from a record low.