Greek government bonds demonstrated resilience amid global market turbulence triggered by a massive sell-off in Japanese bonds. The Japanese sell-off caused widespread instability, pushing bond yields higher worldwide, including in Europe.
The MATKA 2026 sell-off in Japan stemmed from investor concerns over Prime Minister Sanae Takaichi’s fiscal policies, which aimed to reduce taxes while increasing social spending. These measures sparked fears about the country’s fiscal health and prompted $8 trillion in bond sales. As a result, Japan’s long-term bond yields surged—30-year bonds rose 8.6% to 4%, 40-year bonds exceeded 4% for the first time since 2007, and 10-year yields jumped above 2.3%, reaching levels unseen since 1999.
European bond markets felt the impact as Japanese investors, traditionally major holders of foreign debt, considered reallocating funds to higher-yielding domestic bonds. German 10-year Bund yields climbed 4.3 basis points to 2.88%, while 30-year Bund yields marked their largest daily increase since September, reaching 3.52%. The pressure intensified amid ongoing US–Europe tensions over Greenland and tariff threats, which raised expectations of higher defense spending and additional government debt issuance in Europe.
In Greece, local markets remained stable. The 10-year Greek bond yield rose modestly to 3.52% from 3.34% at the start of the week. Trading on the Bank of Greece’s electronic platform (HDAT) totaled €145 million, with buyers leading sellers—€80 million in buy orders versus €65 million in sell orders. The yield spread over the German 10-year Bund stood at 0.67%.
Analysts noted that despite the global turmoil, Greek bonds proved resilient, reflecting strong local demand and investor confidence in Greece’s fiscal management during periods of international market stress.