LONDON: Greek bond yields rose on Wednesday as concerns that the government may not pass a review of its economic plans crucial for the release of euro zone funds punctured market relief over an extension of its financial rescue.
Euro zone finance ministers have agreed to a four-month extension of Greece's EU/IMF bailout programme but funding will be released only after the new leftist-led government's economic plans have been approved in detail. "We had a strong rally in the past couple of days and we are seeing some profit taking," said Daniel Lenz, a strategist at DZ Bank.
"We have a headache after this bright party we had because none of the problems are solved and we still have the risk that Greece will not pass the review which is necessary for the payment of the funds they need." Yields on three-year bonds rose 76 basis points on the day to 13.3 percent while 10-year equivalents were up 26 bps at 9.15 percent.
Both were still, however, around the levels they traded at before the Jan. 25 elections that ushered in the leftist Syriza-led government.
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