Greek bonds taking a battering, what it means for the ECB

There’s some chatter about the rout in Greek bonds in the past week.

Here are the factors:

1. Talk about Greece leaving IMF programs
2. About $164 billion in bad Greek debts
3. Periphery bond funds liquidating (PIMCO)
4. Markets are expressing disappointment in the ECB’s purchase programs

The only factor that would be a genuine cause for alarm is #4 but it’s worth keeping an eye on.

Greek 10-year yield trend breaking

I mocked Greek finance minister Venizelos last week when he said they could borrow cheaper than at the IMF. 10-year yields were at 5.80% then and they’ve moved to 6.46% since.