Greek shares rise, bond yields fall as bailout deal reached

LONDON (Reuters) – Greek shares rose on Tuesday after the indebted euro zone country clinched a multi-billion euro bailout agreement with its international lenders.

The latest bailout deal for Greece also resulted in the country’s sovereign borrowing costs falling back.

Athens’ benchmark ATG equity index rose 1.2 percent, while the Greek banking index surged 6 percent.

Shares in National Bank of Greece also rose 6.6 percent, although the main ATG index remains down by 15 percent since the start of 2015.

Greek two-year bond yields fell more than 4 percentage points to 15.27 percent, while 10-year yields dropped about 70 basis points to roughly 10.50 percent.

The new bailout pact is expected to be worth up to 86 billion euros ($94.75 billion) in fresh loans for debt-ridden Greece, but there was no immediate confirmation of its size.