The yield premium investors demand to hold the nation’s 10- year bonds rather than German bunds climbed to more than 600 basis points after the Financial Times cited German Finance Minister Wolfgang Schaeuble as saying Greece must firm up plans for deficit reductions in 2011 and 2012, and not just for this year, to qualify for aid. Citigroup Inc. said a reorganization of the debt or need for extra support looks “unavoidable.”
The 10-year Greek bond yield jumped 78 basis points to 9.58 percent as of 11:30 a.m. in London. The 6.25 percent security due in June 2020 slid 4.34, or 43.40 euros per 1,000-euro ($1,333) face amount, to 78.86. The two-year yield jumped 300 basis points to 13.96 percent, after soaring the most on record to 14.66 percent.