Greek sovereign yield spreads with the rest of the euro area continue to widen as concerns about a potential default mount. Further downgrades of Greek ratings by some credit agencies helped fuel the sell-off. Yields also rose on comments by IMF Head Lagarde that she had refused Greece a grace period on its loan, although the Greek finance minister subsequently denied making any such request.
Ahead of meeting of euro area finance ministers and central bankers, speculation will mount as to whether the Syriza government can eventually put together a package that will satisfy its creditors and allow further funds to be released, with both sides for now continuing to sound intransigent.
"Funding will become further stretched in advance of upcoming payments to the IMF in May and June, the first of which is due on the 12th of May." notes Lloyds Bank
