Wednesday, November 10, 2010

Greece forced to pay high yields to borrow

Financial Times
November 9, 2010

Greece was forced to pay high yields to borrow from the markets on Tuesday amid signs that the eurozone debt crisis is intensifying.

Athens sold €390m ($543m) of six-month debt but had to pay more than a quarter of a percentage point more in yield to raise the money because of worries about the eurozone.

Greece sold the six-month bills at a yield of 4.82 per cent, up from 4.54 per cent in the previous sale on October 12.

Gary Jenkins, head of fixed income at Evolution, said: “There is so much uncertainty in the markets now. It may be difficult for countries that want to borrow in the markets.”

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