{"id":706478,"date":"2010-04-01T07:25:00","date_gmt":"2010-04-01T11:25:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/greek-yields-tearing-higher-as-bond-markets-call-europes-greece-bailout-bluff-once-again-2010-4"},"modified":"2010-04-01T07:25:00","modified_gmt":"2010-04-01T11:25:00","slug":"bond-traders-realize-the-greece-bailout-is-a-joke","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/706478","title":{"rendered":"Bond Traders Realize The Greece Bailout Is A Joke"},"content":{"rendered":"

\"greek<\/p>\n

There’s this persistent belief that Europe can bluff the market by simply saying they have a plan to financially support Greece without making hard guarantees.<\/p>\n

It’s not getting anywhere.<\/p>\n

Even after the creation of an emergency facility backed by the IM<\/a>F, Greek bond yields are rising, which means investors consider them more risky than before.<\/p>\n

Bloomberg:<\/a><\/p>\n

The yield on 10-year Greek government bonds has increased 25 basis points since EU leaders agreed to the aid blueprint on March 25, reaching a one-month high of 6.529 percent yesterday. The yield eased to 6.525 percent today, still more than double the rate on comparable German debt. Seven-year bonds sold by Greece on March 29 fell for a third day today.<\/p>\n

…<\/p>\n

The aid facility, a combination of IMF and EU bilateral loans, will only be triggered if Greece runs out of fund-raising options. Greek Prime Minister George Papandreou, who has to raise as much as 11.6 billion euros by the end of May, welcomed the plan last week as “very satisfying.”<\/p>\n

Since then, the extra yield investors demand to hold Greek 10-year bonds instead of German equivalent has risen to 342 basis points, compared with 305 points on March 26. The yield on Greek two-year bonds rose to 5.17 percent today from 5.119 yesterday.<\/p>\n

Keep in mind that Greek credit default swaps exploded after a weaker than expected Greek bond auction<\/a>, as well. Markets are still on pins and needles when it comes to Greece’s creditworthiness, and haven’t been assuaged by Europe’s repeated wishy-washy bailout plans.<\/p>\n

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