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Greek Markets Dive as Syriza Digs In to Fight Austerity

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Greece’s government bonds and stock market plunged in the week after the election of Syriza, the political party whose vow to renegotiate debt obligations and roll back austerity measures has sparked an investor flight.

Italian and Spanish sovereign securities fell for the first time in three weeks amid concern the European Central Bank’s quantitative-easing plan won’t fully insulate the rest of the region’s debt markets from Greece’s turmoil. The yields on German bunds dropped to record lows as investors sought the safest assets. Barclays Plc analysts said the likelihood of a Greek exit from the euro area is higher under the rule of new Prime Minister Alexis Tsipras than in 2012.