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EU Leaders Meet as Bond Market Sees Greek Default: Euro Credit

As European Union leaders haggle over their second plan to stem the financial crisis, traders are betting Greece won’t be able to pay its debts.

Greek 10-year bond yields rose to a record this week and it costs more than ever to insure against a default, even though the nation received a 110 billion-euro ($153 billion) bailout from the EU and the International Monetary Fund last year. Two-year yields exceed 10-year levels, suggesting a restructuring may come before the three-year aid program expires.