Greek Bonds Slide With Stocks as Tsipras Asks for Euro Summit
- Yield spread widens between securities due in 2017, 2026
- EU President Donald Tusk urges ministers' meeting instead
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Greek government bonds tumbled, pushing the yield on shorter-dated notes up by the most in more than three weeks, after the nation failed to resolve disagreements with creditors, prompting Prime Minister Alexis Tsipras to seek a euro-area leaders’ summit. Stocks fell.
Investors are demanding an extra 274 basis points of yield to hold 2017 securities instead of those due in 10 years. The widening gap signals that investors may be more worried about getting repaid in the short term rather than the possibility of inflation eroding returns on debt with longer maturity dates. The Athens Stock Exchange General Index declined the most in more than a month.