Greece Resistant to Global Borrowing Cost Surge

Greece's strong primary budget surpluses and declining public debt have cushioned the impact of global borrowing costs. Despite turbulence in government bond markets, Greece has seen a smaller increase in its borrowing costs compared to major European economies.

The yield on Greece's 10-year government bonds rose 40 basis points over the past month to 4.24%, according to Bloomberg data. This reflects the sharp decline in Greece's public debt, which has prompted upgrades from international credit rating agencies such as DBRS.

Globally, government bond yields have reached a 19-year high, with major economies facing rising borrowing costs due to inflation and large budget deficits. The US Treasury Secretary has argued that the country's growing debt does not pose a significant concern, but markets remain skeptical.