Monday, June 27, 2011

Greece Update

by Bill McBride on 6/27/2011 05:51:00 PM

From the WSJ: European Bankers Tackle Greece Debt Plan

The efforts to get a meaningful private-sector contribution to the bailout, as demanded by Germany and other governments, face a tight deadline. Finance ministers of Greece's fellow members of the 17-nation euro zone will meet to discuss a new rescue on Sunday ...

The ECB has taken a hard-line public stance against any private-sector participation that would result in a default rating for Greece.
They are trying to find a way for the private-sector to participate without it being called a default. Not easy ... and of course all of this is contingent on Greece passing the new austerity plan.

Looks like next Sunday will be interesting ...

The yield for Greek 2 year bonds is up to 29.4%, and the 10 year yield are down to 16.8%. Portuguese and Irish 10 year yields are up to new record highs (12.1% for Ireland, 11.7% for Portugal).

Here are the links for bond yields for several countries (source: Bloomberg):
Greece2 Year5 Year10 Year
Portugal2 Year5 Year10 Year
Ireland2 Year5 Year10 Year
Spain2 Year5 Year10 Year
Italy2 Year5 Year10 Year
Belgium2 Year5 Year10 Year
France2 Year5 Year10 Year
Germany2 Year5 Year10 Year