Greek Bond Yields Close to 9% Well Above Sustainable Levels

October 16, 2014 Share Print 0

Greek government bond yields spiked beyond 8 percent on Thursday morning, in a sign of growing concern about the country’s economic stability given the possibility of snap elections and plans to exit its bailout early.

The 10-year note was yielding 8.941 percent at 11.30 a.m. BST, well beyond the 7 percent-threshold which many analysts believe is unsustainable. It is the first time yields have passed this point since January. On Wednesday evening the sovereign note yielded 7.863 percent.

The volatility comes amid growing concerns about Athens’ plans to exit its bailout ahead of schedule. On Saturday, Prime Minister Antonis Samaras won a confidence vote in parliament, forcing lawmakers to back his plans to exit its international aid program early — a prospect that is looking increasingly unlikely.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Bio
Twitter
Google+
Latest Posts

Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.