Like a phoenix rising from the ashes

The Greek 10 year government bond yield stands at 4.22% this morning. This is remarkable as it is below the Treasury yield in the US (4.83%). Things appear indeed to improve in Greece: S&P raised last week its long-term issuer ratings to 'BBB-/A-3' with a stable outlook, citing a stronger budgetary position. It was the first among the “big three” rating agencies to upgrade Greece to investment grade since the country’s debt crisis in 2010. We continue to prefer US Treasuries: as European investors we take currency risk but we get a higher yield for a lower credit risk (Standard & Poor's credit rating for the United States stands at AA+ with stable outlook ). Also the Italian 10 year government bond yield is at a juicy 4.82% but tainted with many budgetary, economic and political risks.