Greek bond yields spike as bailout talks falter

Yields on short-dated Greek debt have hit a fresh eurozone-era high after the country announced a pause in bailout talks with the IMF.

Two-year Greek government bonds were yielding 46.8% in trading this morning, a rise of 3.86%, following news that Greece was temporarily suspending bailout negotiations with the IMF, EU and European Central Bank. The talks, which centre on the second Greek bailout package announced in July, had been expected to be concluded by 5 September but are now on hold until 14 September to allow analysts more time to study data, according to Greek finance minister Evangelos Venizelos. The news comes the day after Greece admitted it would miss budget deficit targets for 2011. Ten-year yields ...