Greece’s government bonds declined today, pushing 10-year yields to their highest level since May. The news follows Eurozone finance ministers’ purported clash with Greek leaders over their desire to sever a bailout program.
The drop pushed the 10-year yield up for a second day. Ministers are currently monitoring reports “with a certain skepticism and concern,” Austrian Finance Minister Hans Joerg Schelling said yesterday. The Eurozone’s second-biggest bond rally this year is slowing amid concerns that Greece won’t be able to raise finance at sustainable rates without the support of its regional partners. German 10-year yields were four basis points from a record low.
Greek 10-year yields rose 22 basis points, or 0.22 of a percentage point, to 6.92 percent at 9:20 a.m. London time, having climbed to 6.93 percent, their highest level since May 16. The 2 percent bond which matured in February 2014 fell 1.275, or 12.75 euros per 1,000-euro ($1,270) face amount, to 75.940.
Through yesterday, Greece’s government securities had returned 19 percent this year, Bloomberg World Bond Indexes show, trailing behind only Portugal’s 20 percent. Germany’s securities earned 7.5 percent, while Italy’s made 13 percent.
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