Basis Points and Government Bond Yields

government bond yields: Ten-year bond yields spiked 51 basis points to 11.5 per cent, reflecting growing expectations of the eurozone first formal default, according to The Independent. Diplomats who were in the Slovakian capital of Bratislava to plan next week meeting of eurozone finance ministers in Luxembourg on 18 June discussed what could happen to Greece at the end of June. The price of Greek sovereign debt also fell sharply, with two-year government bond yields, which move inversely to prices, rising by 123 basis points to 25.5 per cent. And according to Reuters, a successful cash-for-reforms deal was judged the least likely result. Greece needs to repay €1.6bn to the IMF by the end of the month and any failure to do would be a technical sovereign default that could trigger a financial crisis in the country and a eurozone exit. Two other possibilities were another extension of the current bailout programme – and outright default. (news.financializer.com). As reported in the news.