Greek Bonds Drop as IMF Says Deal on Additional Loans Is Far Off
- Greek shorter-dated notes leading drop shows repayment concern
- German 10-year yield reaches lowest level in a month
Greece Questions Trust in IMF on Bailout Plan Leak
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Greece’s bonds fell, with shorter-dated yields rising the most in almost two months, as International Monetary Fund Managing Director Christine Lagarde said the organization is “a good distance away” from an agreement that would allow for additional loans to Europe’s most-indebted state.
The extra yield, or spread, that investors demand for holding the nation’s July 2017 securities instead of those due in a decade climbed to more than 200 basis points. The so-called inverted yield curve may signal that investors are more concerned about whether they get their cash back in the short term than the possibility of inflation eroding returns on debt with longer due dates.