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Greece’s Bailout Extension No Panacea for Bond Market

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One week after euro-area finance ministers agreed to extend Greece’s bailout, prices of the nation’s government bonds showed no sign of moving above their level when the anti-austerity Syriza party was elected.

While Greek 10-year securities snapped a four-day decline on Tuesday, values remain lower, and yields higher, than before the Jan. 25 elections. The same is true with three-year and five-year Greek debt. That suggests investors remain concerned there will be more financial instability as the government struggles to reach agreement on fresh aid.