Greek government bond yields spiked beyond 8 percent on Thursday morning, in a sign of growing concern about the country's economic stability given the possibility of snap elections and plans to exit its bailout early.
The 10-year note was yielding 8.86 at 11.00 a.m.
BST, well beyond the 7 percent-threshold which many analysts believe is
unsustainable. It is the first time yields have passed this point since
January.
The volatility comes amid growing concerns about Athens' plans to exit
its bailout ahead of schedule. On Saturday, Prime Minister Antonis
Samaras won a confidence vote in parliament, forcing lawmakers to back
his plans to exit its international aid program early.
Samaras' government has also been plagued by the prospect of snap elections early next year if the prime minister fails to gain the support of opposition lawmakers for his candidate for president. A promise to exit the painful program early was key in securing that backing.
The concerns have led to a turbulent few days for
Greek markets, with the Athens' benchmark index tanking up to 9 percent
on Wednesday. On Thursday, the ASE was trading 1.2 percent lower.
http://www.cnbc.com/id/102092857?trknav=homestack:topnews:2
