Greek gov’t bonds fall on short-term financing refusal

Greek government bonds declined on Friday, with three-year yields rising the most in a week, as the chair of the euro area’s finance ministers’ group said governments won’t grant a request by Greece for short-term financing.

“Nobody knows where this is going,” said Peter Schaffrik, London-based head of European rates strategy at Royal Bank of Canada.

“We’ve had a lot of news but we haven’t really gone anywhere.”

Compared with the end of last week, “the market is slightly less nervous, particularly because the issue of a unilateral default in Greece is off the table.”

Greek three-year yields rose 111 basis points, or 1.11 percentage points, to 17.89 percent.