Tuesday, April 26, 2011

Greece Budget Deficit worse than forecast

by Bill McBride on 4/26/2011 08:24:00 AM

From the WSJ: Greece's Budget Deficit Higher Than Expected

Greece's budget deficit in 2010 was 10.5% of gross domestic product, significantly larger than forecast ... Lower-than-expected government revenue was the main culprit behind the higher deficit number. ... The Greek government was targeting a 2010 deficit of 9.4% of GDP ...

The missed target was "mainly the result of the deeper-than-anticipated recession of the Greek economy that affected tax revenue and social security contributions," the Greek government said in a statement after the Eurostat announcement.
More austerity coming - the beatings will continue until morale improves!

The yield on Greece ten year bonds increased to 15.3% today and the two year yield is up to 24%. It seems like the markets expect a credit event soon.

Here are the ten year yields for Ireland at 10.5%, Portugal up to a record 9.6%, and Spain at 5.5%.

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