greece

The value of Portuguese bonds has dropped and yields have widened to record levels, as concern mounts over EU leaders' failure to resolve the Greek debt crisis.

The head of the Eurogroup sent the single currency tumbling yesterday after he issued a warning to Greece that it may not be bailed out again if it gets into further difficulty.

The eyes of the world's investors will be on the European financial markets this morning after a day in which eurozone debt fears saw the FTSE suffer its heaviest one-day fall in two months.

THREE OPTIONS FOR THE GREEKS

Dromeus hedge fund manager Jason Manolopoulos argues Greece's ‘odious' debt was incurred by politicians with a self-granted veil of impunity

Investec Asset Management's Werner Gey van Pittius has warned an imminent restructure of Greek debt would lead to full-blown risk aversion and hit emerging market banks.

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.

European governments yesterday discussed the prospect of a fresh multi-billion euro bailout for Greece - just a year after committing €110bn - in a bid to calm the markets and stabilise the region's currency.

European debt crisis talks have fallen into disarray as the head of the International Monetary Fund, Dominique Strauss-Kahn, was charged with sexually assaulting a maid in a New York hotel.

Cutting deficits is popular in the heavily indebted Western world. Some countries are being forced to, as lenders decline to lend them more money at realistic interest rates.