Ongoing political turmoil in Greece sank demand for its bonds that actually has hardly ever been that high.


During the auction on Tuesday, Greece 6-month bond yield rose by 0.14% to 4.69%.  It goes without saying that this figure is a bit lower than in March, February, January and December.


The fact of increasing bond yield suggests that the recent elections in Greece are just as unfavourable as the unsettled debt restructuring issue was.


Greece cannot place its long-term debt so far, yet it has been yielding increasingly more.


It is worth reminding that April was marked by the unprecedented debt restructuring of nearly one-third of Greece debt burden.  During the operation private banks and hedge funds were forced to accept a 75% loss on their Greek bond holdings.


Shortly after the debt restructuring, international agencies upgraded Greece sovereign credit rating and economic outlook, but the investor interest was never restored.


Financial market participants have been rather buying German bonds as safe-heaven assets.