Greek Bonds Decline as Presidency Vote Fans Contagion

Greece’s government bonds declined, dragging securities from Spain and Italy lower, amid speculation that early Greek Presidential elections will spark renewed political turmoil.

Greece’s 10-year yield climbed the most in almost eight weeks on concern failure to approve a new president would trigger parliamentary elections in the nation, which returned to the bond market this year after a record bailout. While securities from other periphery countries declined, the selloffs were limited as European Central Bank policy makers debate buying government debt. German bund yields dropped to records on demand for the safest assets as stocks tumbled.