Thursday, March 18, 2010

Greek Bonds Fall

From WSJ:

Speculation that a European Union aid package for Greece was in doubt pressured Greek government bond prices and drove up the cost of insuring the country's debt against default.

The market also dragged down prices of some of the euro-zone's other high yielders, including Spain and Portugal.

The moves were triggered when Greek Prime Minister George Papandreou asked the European Union to agree to standby loan agreements at its summit next week to back up Greek borrowing, saying Athens would rather get help from the EU than turn to the International Monetary Fund.
Keep in mind that Greece is only the opening act, wait for Spain to take center stage.

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