Greece’s Bonds Slide as Government Seizes Funds to Avert Default
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Greek bonds declined, pushing three-year yields to the highest since the nation’s debt restructuring in 2012, after the government issued a decree to force municipalities to transfer cash to the central bank.
The decision is another sign of the worsening situation as Greece remains embroiled in a standoff with creditors as pension and salary payments come due. The extra yield, or spread, that bondholders get on three-year notes instead of 10-year securities rose to almost 15 percentage points, signaling that investors are concerned they won’t get paid.