Greece returned to financial markets by reopening its ten-year government bond, attracting investor demand well beyond its funding target.
The government aimed to raise 300 million euros ($356.5 million), but bids climbed to 785 million euros ($932.9 million), signaling strong confidence in Greek debt despite volatility and shifting interest rate expectations across global bond markets.
Greece bond sale draws strong investor demand
The reopening was priced at a yield of 3.34 percent, a level lower than comparable earlier issues and one that signals improved funding conditions for Greece. The transaction involved bonds carrying a 3.375 percent coupon and maturing on June 16, 2036.
Authorities raised 300 million euros ($356 million), while investor bids totaled 785 million euros ($932 million), reflecting substantial demand and resulting in a strong coverage ratio. Settlement is scheduled for Wednesday, February 18, 2026. On that date, Greece will receive the full 300 million euros ($356 million) from the bond sale.
Fiscal discipline drives bond market performance
At the macro level, Greece’s bond performance remains supported by a favorable economic backdrop. In particular, strong fiscal execution and repeated budget overperformance have reinforced expectations of additional sovereign credit-rating upgrades in 2025 and 2026.
In parallel, government policy has focused on reducing public debt levels, including early repayment of long-term loans. Consequently, this approach has strengthened Greece’s standing in capital markets and improved the long-term outlook for its bonds.
However, opposition parties challenge this policy direction. They argue that directing those funds toward domestic investment, public services, and household support would produce stronger economic and social returns. In their view, faster debt repayment limits resources for growth measures, especially while cost-of-living pressures remain elevated.
Major banks maintain positive outlook on Greek bonds
At the same time, major international banks continue to express constructive views on Greece’s sovereign and corporate debt. Bank of America lists Greek bonds among the strongest performers in Europe, citing solid growth and improving fiscal indicators.
Similarly, Citi expects Greek bonds to outperform regional peers and forecasts tighter spreads, along with a further credit-rating upgrade in 2026. The bank points to stronger economic momentum than in several core European economies.
In addition, JP Morgan has reiterated a positive medium-term view. It names Greek government bonds among its preferred positions for 2026, based on macroeconomic resilience, political stability, and limited refinancing needs.
