Greek govt bond yields reach fresh highs on default fears

Greece's financial problems continue to deteriorate as its four biggest banks have been forced to ask for State aid and government bond yields rise to fresh highs.

Leading Greek banks desperately need more than £13bn of government support under a 28bn euro support scheme launched under the previous administration in 2008. They are fighting to cope with losing £8.8bn of deposits, or 4.5% of the total in the banking system, as local savers move their money out of the country. Pressure on the Greek Government also intensified as interest rate yields on 10-year government bonds hit a new record of 7.2% yesterday with markets more worried the beleaguered country might default on its debt. However, the higher cost of borrowing will make it even harder...