ECONOMY

Greek bond yields climb 11 basis points

LONDON – Greek bond yields rose on Monday after a senior European Union official said Athens was “highly unlikely” to end its bailout program without some new form of assistance that will require it to meet targets.

Yields on Greek 10-year bonds rose 11 basis points to 8.22 percent, reversing an earlier fall to underperform other eurozone bonds.

“The market is scared that whatever happens Greece is probably going to be in trouble,” said Gianluca Ziglio, executive director of fixed income research at Sunrise Brokers. “If they go it alone, keeping the IMF program and they lose the EU aid as planned they basically have no safety net … If they decide to accept a precautionary credit line then the situation politically becomes complicated. They can’t really sell to the public that they are free from outside control.” [Reuters]