Recently ,the yield -- the rate of return for the buyer or holder of existing debt -- on the benchmark 10-year government bond was 9.129 percent, the first time it has topped 9.0 percent since the eurozone was established.
The yield on the 10-year bond was 8.950 percent on Tuesday, already way over the just sustainable limit of around 6.0 percent.
How can a country afford to pay high interest with slow global economic?
The cost of insuring Greek, Portuguese and Irish bonds rose to records yesterday. Credit-default swaps on the governments’ bonds pared the advance today, with contracts on Greece falling 49 basis points to 1,303, while Portugal was 13 lower at 653 and Ireland fell 9 to 663, according to CMA.
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