Greek debt sees big one-day fall / Pressure grows for more Greek cuts

The Greek bond markets saw one of their biggest one-day falls of 2010 on the 25 February 2010 as shaken investors warned that the country faced the growing threat of a ratings downgrade.

In spite of signals that Greece was planning new austerity measures, government two-year bond yields, which have an inverse relationship with prices, rose nearly a percentage point as a second ratings agency warned of a downgrade.

Gary Jenkins, head of fixed income research at Evolution, said: 'It has got to the point where something has to happen. Either the Greeks come out with big budget cuts or the EU makes clear its plans to help them fund their debt'

ESO: Background information: Greece ponders high-risk bond move http://www.europeansources.info/record/greece-ponders-high-risk-bond-move/

ESO: Background information: Experts eye possible Greek bail-out http://www.europeansources.info/record/experts-eye-possible-greek-bail-out/

ESO: Background information: Greek crisis emboldens euro critics http://www.europeansources.info/record/greek-crisis-emboldens-euro-critics/

Kathimerini, 26.2.10: Government bracing for more measures http://www.ekathimerini.com/4dcgi/_w_articles_politics_100003_26/02/2010_115197

ESO: Background information: Austerity plans spark protests in eurozone http://www.europeansources.info/record/austerity-plans-spark-protests-in-eurozone/

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