Yields on the Greek governments brand new bonds are already trading at distressed debt levels suggesting that despite Februarys bailout package investors still see a strong chance that Greece will not be able to sustain even its much-reduced debt burden.
As the first week of trading closed, yields on the benchmark 10-years were at 18.24 percent down from Tuesdays closing high, but still the highest in the euro zone.
The new bonds have replaced old Greek paper, under a massive 206 billion ($273.5 billion) exchange program that swapped old bonds for new ones carrying lower coupons.
The high yields the most elevated by far in the euro zone reflect skepticism about whether the latest rescue deal, based on an orderly default of Greek debt, is enough to prevent a second default in the future. Last month private sector creditors reluctantly agreed to an effective default of 75 percent of the value of their debt, in a deal masterminded by euro zone finance ministers.....