Greek, Irish, Portuguese Bonds Slump on Default Bets; Bunds Rise

Greek bonds slumped, pushing yields up by the most in almost a year, as the cost to insure the securities against default jumped to an all-time high amid mounting concern it will have to restructure its debt burden.

Yields on two- and 10-year bonds from Greece, Ireland and Portugal all rose to euro-era records this week. Lars Feld, a member of German Chancellor Angela Merkel’s council of economic advisers, said on April 20 that Greek debt restructuring is probable. German bunds gained after Standard & Poor’s put a “negative” outlook on the U.S.’s AAA credit rating, sparking demand for an alternative to Treasuries.