Default fears push Greek bond yields to new high

Yields on Greek 10-year government bonds have rocketed to record levels as fears rise the nation could default on its debt repayments, the FT reports.

As the bonds were sold off, yields climbed 61.5bp to their highest ever level of 16.75%. The yield on the equivalent German note fell back to 3.12% as investors turned to Bunds as a safe haven. This week eurozone ministers met to discuss whether Athens should restructure its debt. The European Central Bank strongly opposed the move, with German chancellor Angela Merkel ruling out any immediate help for Greece. Other solutions suggested this week include Greece dropping the euro and return to the drachma, voiced by Hans-Werner Sinn, head of Germany's Ifo economic institute, the FT repo...