ECONOMY

More pundits see Greek default

Greek bonds slumped on Thursday and the cost of insuring Greek debt against default rose to a record high amid mounting investor concern that the country may be forced to restructure its debts.

The declines pushed the yields on Greek 10-year bonds to euro-era records after German Finance Minister Wolfgang Schaeuble said that Greece may need to renegotiate its debt burden if an audit in June raises questions about its ability to pay creditors.

Speculation on the possibility of a Greek restructuring pushed local stocks 2.37 percent lower midsession on Thursday as the country?s banks, which hold about 45 billion euros of Greek state bonds, tumbled more than 4 percent.

?Schaeuble?s comments bring the prospect of restructuring back onto the table,? Peter Chatwell, a fixed-income strategist at Credit Agricole Corporate