Greek bailout edges closer as bond yields soar

Greece could be forced to reluctantly accept the agreed EU and IMF bailout package after its borrowing costs surged to fresh highs yesterday.

The spread between the yield on a ten-year Greek bond and the equivalent German benchmark rose to a record 4.91% yesterday, which took Greece's long-term borrowing rate above 8%. Greece was able to raise almost €2bn yesterday by selling three-month Treasury bills, but was forced to offer the notes at a 3.65% yield, more than twice the rate it offered earlier in the year. The Greek finance minister George Papaconstantinou acknowledged yesterday the country could seek rescue finance from the European Union and the International Monetary Fund. "Greece will borrow either from the marke...