Fund managers call for urgent Greek deal

Fixed income managers expect a deal to support Greece to be struck by Monday as concerns about its debt problems spill dangerously across the continent.

Bonds issued by southern European nations were sold off yesterday after a German MP said the EU would not bail out struggling states. His comments sent yields on 10-year Greek bonds up by over 0.4% to 7.15%. Portuguese, Spanish, Irish, and Italian bonds were also hit. Andrew Wilmont, manager of the Axa IM Pan European High Yield Bond fund says he expects "something to happen, probably over the weekend" to help Athens. "The longer governments leave [news on any support for Greece] hanging, the more volatile markets will be, because people are nervous." He says: "Yesterday was ext...