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Greek Bond Yields Jump to Record on Concern Bailout Will Fail

Greek bonds slumped, with 10-year yields rising for an eighth day to a euro-era record, amid concern Finland’s demands for loan collateral jeopardize Greece’s second bailout package and may trigger a default.

German two-year notes gained after a U.S. report showed initial jobless claims unexpectedly increased last week, fueling concern the world’s largest economy is slowing and spurring demand for the safest assets. The spread between Greek and German 10-year yields widened to as much as 1,632 basis points, also the most since the euro was introduced in 1999. The benchmark Stoxx Europe 600 Index fell 1.2 percent.