Greece aid relief short-lived amid German anger - papers

Euphoria over a joint EU-IMF rescue deal for Greece worth €45bn (£39.8bn) appears short-lived, after angry reactions in Germany and continued concerns among bond investors any bail-out merely delays the worst.

Greek borrowing costs remain stressed, despite falling from post-EMU highs last week. The yield spread on 10-year bonds over German Bunds dropped by 45 basis points to 6.75% on Monday, the Telegraph reports. "This is a short-run fix, not a long-run solution," says David Owen at Jefferies Fixed Income. "At the end of the day, Greece has to carry out monumental fiscal tightening even as it slides deeper into recession. They risk chasing their tale." Mohamed El-Erian, head of the US bond fund Pimco, doused hopes his firm would step in to buy Greek debt, saying the rescue package at rates...