The turmoil in Greece has led to a sharp increase in the Greek government bond yields. Now this recovery is also beginning to spill over into several European countries, primarily the rest of the so-called “PIGS” -land. For the first time since August 2014, the interest rate on Spanish 10-year government bonds passed 2.5 percent. Interest rates on Italian and Portuguese government bonds have risen sharply. In an interview with The Bild the Greek finance minister said on Monday that Greece is not planning to come up with new proposals for a solution with creditors at the meeting of eurozone finance ministers this Thursday.
Big Drop on Euro
Creditors on his side stands according to Bloomberg firm on its last proposal. At the moment, the yield on the 10-year government bonds to Spain, Italy and Portugal all up nine basis points, while the Greek ten-year is up by 31 basis points to 12.05 percent. All European stock exchanges, with the exception of Moscow, opening into the early hours of Tuesday. This means that the euro may start to increase soon again after a big drop against the dollar last couple of months. The crisis in Greece has been a real turmoil for all Eurozone countries and most currencies has been weakened. Final decision has not yet been made and Greece are not ready yet to give after for the tough reforms that the EU demands in order to release more funds to Greece. Most investors are still waiting for a final decision in the matter before starting to invest in the Eurozone. So after this big drop on euro we may start to see better times for the euro and the eurocountries.