Snap election announcement greeted with vigorous rally on ATHEX, shrinking of 10-year bond yield

Investors were “bullish” on Monday at the Athens Stock Exchange (ATHEX), while the yield for the 10-year Greek bond also fell more than 30 basis points in one session, nearly reaching a historic low, all in the wake of a late-night appearance by the Greek prime minister hours earlier to announce a snap election.

The general index at the Athens Stock Exchange closed up 6.09 percent, reaching 776.60 points, one of the best performances over the past 45 months and with bank shares leading the rally.

The yield for the 10-year bond fell to 3 percent, lower than the 3.2-percent level last seen in far-off September 2005, only to level off at 3.14 percent.

SYRIZA’s electoral slide, also punctuated by disappointing performances by party-backed candidates in municipal and regional government elections, contrasted with a surprisingly strong performance by pro-market and pro-reform ND.

According to Bloomberg, the those characteristics left no room for Tsipras not to declare the snap election.

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