LONDON, Oct 19 (Reuters) - Greek two-year government bond yields fell to their lowest this year on Monday as investors welcomed Athens' approval of a series of reforms needed to unlock bailout cash.
Parliamentary approval of the reform bill late on Friday keeps Greece on track to pass the first review under its 86-billion-euro ($97.6 billion) aid programme in the coming weeks.
"Investors are simply digesting the vote ... on the so-called preconditions for the third bailout package," said Christian Lenk, rate strategist at DZ Bank.
Greek two-year yields fell 77 basis points to 8.30 percent on Monday, according to Tradeweb, the lowest level hit this year.
The gap between Greek and German two-year yields was also at its narrowest this year.
(Reporting by John Geddie and Marius Zaharia, editing by Nigel Stephenson)