Greek bond yields have stopped falling as they come to market with EUR 5 bln of 7-year bonds.
Remember, it was the price of credit that the Greeks were concerned about, not its availability. The EU/IMF package has done little to lower the price Greece will have to pay in the marketplace, somewhere around 6% for 7-year money versus under 3% that the Germans pay.
Greece claims they’ll go broke paying that much interest even if the market is willing to lend to them, stretching the crisis out into the medium-term rather than dealing with the issue once and for all…
