Greek bonds dropped, leading declines by the securities of Europe’s most indebted nations, as the country’s credit rating was cut by Standard & Poor’s.
The losses pushed the spread investors demand to hold the securities instead of similar-maturity German bunds to the most in almost two weeks, while the cost to insure Greek debt climbed to a record. Two-year yields in Portugal and Ireland climbed to all-time highs. Greece needs “a further adjustment program,” Luxembourg Prime Minister Jean-Claude Juncker said after an unscheduled meeting of finance ministers last weekend. Bunds rose on demand for the safest assets as data showed European investor confidence fell more than economists predicted.
