Greek Bond Rally Masks Lingering Bailout Concern

Greece is rediscovering how ruthless fixed-income investors can be.

The nation, whose market return in April embodied an easing of the euro-area debt crisis, saw its sovereign securities tumble 5.7 percent last quarter as the rest of the region’s bonds rallied. Behind the selloff: a growing concern the government’s proposal to become self-financing will leave the country’s budget controls in jeopardy.