April 27, 2011
Record Greek debt yields indicate there’s no private investor demand for the bonds of the first European nation to tap European Union and International Monetary Fund aid, according to Societe Generale’s Kit Juckes.
“If the government had to come in and borrow money for two, three, four or five years off savers, it would really struggle to do so at this stage,” said Juckes, head of currency research at Societe Generale in London in a radio interview on “Bloomberg Surveillance” with Tom Keene. “The solution for this is more support within Europe -- so another bailout package -- so they don’t have to borrow money off the market, or a change that makes the fear of restructuring go away. The market is saying it has no confidence.”
Greek two-year yields surged almost two percentage points to as high as 25.95 percent, rising above 25 percent for the first time ever. Ten-year yields soared as much as 1.01 percentage points to 16.34 percent, reaching euro-era highs for a ninth consecutive day.