Muted response to Greek drama from 'peripheral' bond markets

Monday's flight from risk assets as the threat of a Greek default and eventual exit from the euro zone almost went to script, with investors dumping shares, buying the US dollar and piling into high-quality government bonds.

However, there were some surprises, led by the relatively muted rise in yields on sovereign bonds from the so-called "peripheral" euro zone economies of Spain, Portugal and Italy.