Greek bonds slump as debt talks fail

Investors dumped Greek bonds on Monday, after talks on ending a deadlock between Athens and its international creditors broke down at the weekend and the prospect of a debt default drew dramatically closer.

Greek government bond yields spiked to the highest and stocks fell to their lowest since April.

“A default of some sort is now all but a certainty,” said Yiannis Koutelidakis, senior economist at Fathom Consulting in London.

The yield on two-year Greek government bonds spiked nearly 4 percentage points to just under 30 percent, the highest in almost two months, while the 10-year yield jumped to 12.7 percent, the highest since April 27.

The price of Greek corporate bonds also fell, pushing up yields.

The yield on Public Power Corporation’s 500-million-euro, 5.5 percent, five-year bond maturing in 2019 rose to 17.80 percent, the highest since its launch in May last year.

The yield on National Bank of Greece’s seven-year bond maturing in October this year scaled 20 percent.

At the turn of the year it was just 2 percent.


Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.