Greek government bond yields rose to their highest level in almost two months on Monday as Athens’ plans for an early exit from the country’s bailout programme raised concerns about its future financing and debt relief.
Prime Minister Antonis Samaras last week publicly acknowledged that Greece hoped to wean itself off the 240-billion euro international aid package a year before its scheduled end in early 2016.
The plan is a gamble for Greece as it makes a tentative return to bond markets after its 2012 debt default.
“The worry is that if they argue that they don’t need further help, then the market will anticipate that there is going to be more bond supply,» a trader said.
Greek 10-year bond yields rose 37 basis points, their biggest one-day jump since mid-May, to 6.526 percent.