Bonds News

Greek bond yields soar on worries about IMF role in bailout

LONDON, Jan 30 (Reuters) - Greek government bond yields soared on Monday on worries about whether the International Monetary Fund will participate in a bailout programme for the indebted southern European country.

Germany said on Monday it believed the IMF would participate in Greece’s bailout and that it was too early to start thinking about other possible scenarios if the IMF did not take part.

Analysts said concerns about the IMF’s role in a further bailout were heightened after a leaked report that the Fund expects Greek debt to explode to 275 percent of GDP by 2060.

Greek bond yields were broadly higher on Monday, with two-year bond yields rising 180 basis points to a one-month high of 8.73 percent. (Reporting by Dhara Ranasinghe, editing by Nigel Stephenson)