Greece Sparks Meltdown in European Markets

A slump in euro-area government bonds gathered force on concern Greece’s talks with creditors will fail to clinch a deal in time to prevent a default.

As Greek bonds tumbled, the repercussions spread across the region, with Spain’s 10-year yield rising the most since June 2013 to the highest this year. German bunds, the region’s benchmark sovereign securities, were swept up in the selloff with Treasuries after an unexpected jump in growth for U.S. service industries.

Greece’s debt standoff is exacerbating tension in euro-area bond markets, which already succumbed to their worst month since 2013 in April. The nation blamed international creditors for a failure to find an agreement in its bailout talks, saying a deal won’t be possible until they agree on a common set of demands. Portugal’s Finance Minister Maria Luis Albuquerque said on Tuesday Greek Prime Minister Alexis Tsipras should take the offer on the table.