* Further work seen needed to close Greek bailout review
* Dutch finance minister hopes for resolution this week
* Most periphery yields up after recent rally
By Joshua Franklin
LONDON, March 11 Greek 10-year bond yields edged
up on Monday as talks to release funds under its international
bailout continued, helping halt a five-week rally that had led
yields on the junk-rated debt to their lowest in nearly four
Speaking at a news conference after Monday's meeting of euro
zone finance ministers, Dutch Finance Minister Jeroen
Dijsselbloem said "further work is needed on several fronts"
before the review of progress on reforms required under Greece's
237 billion euro bailout could be closed.
He was "slightly optimistic" some resolution would be found
this week, according to remarks quoted on the European Council's
Greece has shown signs of recovery from a six-year
recession. It posted a primary budget surplus in January,
helping Greece's 10-year yields to fall by more than a fifth to
6.68 percent since the beginning of February.
"That's the lowest level we've seen since the first Greek
bailout (in 2010) so it's not unusual that you now see some kind
of correction, especially if the news flow surrounding Greece is
at the same time slightly negative," Mathias van der Jeugt, rate
strategist at KBC in Brussels, said.
Greek 10-year yields were 2.2 basis points
higher 6.97 percent.
Elsewhere in the periphery Italian and Spanish yields were
also higher after hitting historic lows in the past week.
Yields on 10-year Spanish bonds rose 2.8 bps
to 3.34 percent, lifting off Monday's eight-year lows of 3.31
percent. Italian 10-year yields edged 0.08 bps
higher after equalling Thursday's eight-year low on Monday.
"In light of a quite sizeable rebound in yields we already
say... now is a time for a pause for breath," said Jan von
Gerich, chief fixed income analyst at Nordea. "The near-term
upside for yields is rather limited. There are no obvious
triggers in today's calendar that would change this picture."
Portuguese debt bucked the trend among
lower-rated bonds, with increasing optimism the country could
exit its EU/IMF bailout later this year. Yields on its 10-year
bonds fell 3.2 bps to fresh near four-year lows of 4.46 percent.
In core euro zone markets, German yields were flat at 1.63
percent while Belgian yields were 1 bp lower at 2.33 percent.
Belgium was preparing to sell a new 20-year bond via
syndication, with orders exceeding 5 billion euros, a source
with knowledge of the deal told IFR.