Yields and basis point (bp) movements of some of the most-watched 10-year bonds this afternoon:

UK: 1.85% (+2.5bp)
US: 1.77% (+1.9bp)
Germany: 1.56% (-1.5bp)
France: 2.245% (+0.7bp)
Spain: 5.568% (-5.6bp)
Italy: 4.841% (-2.7bp)
Greece: 17.016% (-2.9bp)

[There are 100bp to a percentage point]

Greek bond yields declined today on speculation that the country could be given more time to reduce its deficit.

Leaders of the coalition government met again to try and agree on the €13.5bn of austerity measures that must be agreed in order to comply with bailout agreement and receive the Troika's approval for the release of the next €31.5bn tranche of aid.

German newspaper Süddeutsche Zeitung reported that the Eurozone had granted Athens two more years (ie., until 2016) to bring its deficit down to 3%.

Market strategist Ishaq Siddiqi from ETX Capital said today: "This appears to be the sort of deal that Greece was fighting and praying for as ministers all expressed the need for more breathing space to get finances in check.

"Clearly the Troika must be reassured at the developments in Greece to offer two extra years, although we must await a final draft and approval by the Greek parliament before we get too excited and close the chapter on Greece."

However, ECB board member Jörg Asmussen didn't hesitate to point out that no decision on such an extension has been made. "So far there is no final agreement between the Troika and the Greek government. We are making progress in Athens, but we are not there," he stated on German public broadcaster ARD.

US Treasury yields advanced today after some upbeat housing data spurred a move away from 'safe-haven' assets. US bonds also gained ahead of a debt auction to sell $35bn in five-year debt. The Treasury is looking to sell a total of $99bn of bonds through three issuances this week.

German yields fell today after the nation surpassed its maximum target in a 10-year bund sale, the first time that has happened in the last three issuances of those securities. German received bids for €5.06bn of the securities, well above the €4bn target, while yields fell to 1.52% from 1.56% at the last sale.

BC

Related share prices