ECONOMY

Greek bonds end decline on hopes for a deal

Greek government bonds climbed for the first time in three days, as an administration official said the nation planned to request a six-month extension of its international loan agreement.

The potential for a Greek deal eased tensions, after talks on financial support had broken down on Monday.

Prime Minister Alexis Tsipras’s government intends to make the request on Thursday, according to the official, who spoke on condition of anonymity.

“We’re at a stage where we have good days and bad days, and now the market is seeing a little more hope they’ll make ends meet,” said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen. “It’s the nature of these things that we don’t get a deal until the last minute, so there is this back and forth.”

The Greek three-year yield dropped 115 basis points, or 1.15 percentage point, to 17.40 percent, after climbing 271 basis points over the two previous days.

Greece’s 10-year yield dropped 26 basis points to 9.98 percent. It reached 44.21 percent in 2012.

[Bloomberg]