Concerns Over Greece Continue to Weigh

Greek stocks fell nearly 4 percent on Tuesday and 10-year debt yields remained above 11 percent, following disputed reports that the International Monetary Fund (IMF) had suggested Greece needed further debt relief from its creditors.

The U.K.’s Financial Times newspaper reported on Tuesday that Poul Thomsen, an official at the IMF—one of the “Troika” of bodies supervising Greece’s bailout program—had told euro zone finance ministers at a recent meeting in Riga that Greece would require debt relief.

The suggestion hit Greek stocks and bonds hard, leading broader European markets downwards on Tuesday.  European officials rushed to deny that any debt hair cuts were only the cards, with a reforms-for-loans package with Greece still under negotiation.