Greece Bonds Punished as EU Politics Is Back on Investor Radars
Eligibility for ECB QE later in 2016 may provide support.
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Greek bonds extended losses ahead of Thursday’s Eurogroup meeting, where euro-area finance ministers are expected to seek more clarity on the country’s pension reforms and budget measures.
The first review of the third Greek bailout program has been stalling since October 2015 over disagreements on pension and tax reforms, but analysts say the outlook may be more upbeat than the headlines and market moves suggest. Bank of America Corp. and Greylock Capital Management say the country’s bonds offer better value than many of their peers.