Bonds, stocks rise after new EU deal
Greek bonds and stocks rose early on Monday after European Union leaders agreed on a retooled bailout plan for the region?s most indebted nations.
Yields on 10-year Greek debt fell 29 basis points to 12.53 percent while Greek stocks advanced 3.86 percent to 1,634.28 points on bank-led gains. Major European bourses’ were mixed.
Euro-area leaders struck an agreement on an expanded bailout plan for the region?s most indebted nations during the early hours of Saturday, two weeks sooner than investors anticipated.
Leaders agreed to ease the terms of Greek rescue loans and will allow the 440 billion-euro bailout fund to be used to its full extent to assist debt-strapped nations.
The additional yield investors demand to hold 10-year Greek bonds instead of German bunds fell 27 basis points to 932 basis points.
