Germany Readies Surrender in Fight to Save Greece: Euro Credit
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Germany may be getting ready to give up on Greece, as measures in the credit markets signal growing concern about the smaller nation’s ability to repay investors.
Yields on Greek two-year notes rose above 60 percent today for the first time. Five-year credit-default swaps to insure the country’s bonds and to speculate on government securities soared 937 basis points to an all-time high of 4,437, according to CMA. The contracts are the highest in the world and more than three times the 1,244 basis points for Portuguese debt.