Greek CDS hits highest since late Dec as bailout worries weigh
The cost of insuring Greek government debt against default rose on Tuesday as uncertainty lingered over the International Monetary Fund's role in a third bailout for Greece.
Five-year credit default swaps (CDS) on Greek government debt rose 5 basis points to 1,011 bps, according to Markit, the financial information services company. This was higher than any closing level since December 29.
On Monday, the head of the eurozone's bailout fund said Greece will only receive more loans from the bloc if the IMF joins its latest aid program, spelling out a condition thus far disregarded by Athens's creditors.
Greece needs a new tranche of financial aid under its 86-billion-euro bailout by the third quarter of the year or it faces the risk of defaulting on its debts.
Jitters about Greece continued to weigh government bond markets, with yields broadly higher. Greece's 10-year bond yield was up 43 basis points at 8.19 percent, having hit a three-month high earlier at around 8.35 percent.
[Reuters]
