Greek 2-Year Note Yields Rise to Record; German Bunds Decline

Greek note yields reached euro-era records amid growing speculation the country will need to restructure its debt as financing costs mount.

German debt slid as data showed European services and manufacturing growth unexpectedly accelerated in April, bolstering the case for higher interest rates. Greece sold 1.625 billion euros ($2.3 billion) of 13-week bills at a higher interest rate amid lower demand than the previous auction of similar debt. Greek two-year note yields breached 20 percent for the first time yesterday. Portuguese two-year yields rose to the highest in at least 15 years today.