Monday, April 18, 2011

Greece Bond Yields at Record High following Default Comments

by Bill McBride on 4/18/2011 08:29:00 AM

The yield on Greece ten year bonds jumped to 14.4% today and the two year yield is up to 19.6%.

From Reuters: Greece asked EU/IMF at Ecofin to restructure debt-paper

Greece told the IMF and the European Union earlier this month that it wants to restructure its debt and discussions on the issue are expected to start in June, Greek daily Eleftherotypia said on Monday.
...
The paper said U.S. Treasury Secretary Timothy Geithner is also in favour of stretching out repayments of Greece's debt.

"You have to do it, he told Papaconstantinou," the paper said
This report has been "dismissed" by Greek, EU and IMF officials, but it is widely expected that Greece will default (aka restructure). Many analysts expect the restructuring to include extending the duration.

Here are the ten year yields for Ireland up to 9.8%, Portugal up to a record 9.1%, and Spain at 5.6%.