ECONOMY

Greek bonds fall, underperform rebounding peripherals

Ten-year Greek government bond yields rose to their highest since late April as political turmoil put the bailed out country back in the spotlight.

Greece’s small Democratic Left party could pull out of Prime Minister Antonis Samaras’s ruling coalition after talks to resume state television broadcasts collapsed, party officials said on Thursday.

Ten-year Greek yields rose 70 basis points to 11.41 percent, as other euro zone peripheral yields fell.

Reuters reported on Wednesday that European foot-dragging could leave Greece some 2 billion euros ($2.7 billion) short this year as some euro zone creditors were reluctant to roll over their Greek debt holdings.

The IMF said that if its ongoing review of the Greek bailout programme was concluded by the end of July, as expected, no financing problems would arise.

[Reuters]