Greek bond yields rise as IMF says long-term debt sustainability uncertain
Greek bond yields rose to three-week highs on Tuesday, after the International Monetary Fund said that while euro zone debt relief has made Greece’s public debt sustainable over the medium term, there was uncertainty over the longer-term outlook.
The yield on Greek five-year government bonds rose to a high of 3.03 percent and was 11 basis points higher on the day. Ten-year Greek bond yields also hit three-week highs, climbing to 3.967 percent.
The IMF published its debt sustainability analysis for Greece, showing significant differences with the one that euro zone countries used to put together their debt relief offer for Athens in June.
It said optimistic assumptions on Greek growth and primary surplus made debt sustainability uncertain in the long-term.
Greek bond yields have seen sharp falls since the debt relief agreement with the euro area in June. [Reuters]
