On Monday, the indicator of price volatility on the forex market reached its peak since 2011 amid difficulties in the negotiations over the financial aid for Greece. However, the price of the country’s government bonds is still rising.
The Greek 10-year bond yield rose by 12.29%; and 2-year bond yield, by 28.54%. Investors worry that Greece’s problems may spread over the neighboring counties such as Spain, Italy, and Portugal. That is why, bonds of these countries fell in price.
This year, Greece’s government bonds perform rather poor among valuable assets of other reported countries. Investors who put in the country’s bonds lost 7.4% of their investments, in contrast with losses of 1.3% of Germany’s bonds and 2.5% of the Spanish ones.
Though negotiations between Athens and the European creditors are still in progress in Brussels, the market is more interested in the Eurogroup finance ministers meeting in Luxembourg that is due on June 18.
According to the US Commodity Futures Trading Commission, last week, speculators cut the number of net bets on the drop in the EUR/USD pair to minimum. Still, the euro tumbled.
The volatility of EUR/USD amounts to 14.39%; of USD/JPY, 9.07%; and of GBP/USD, 9.3%.
