FYI: the 10-year Greek bond yield rose 164 basis points to 11.69 percent as of 11:32 a.m. in London.
Remember, Paterson predicted disaster in the Greek bond market when 10-year yields were 6.83 on April 6th.
Wooof.
* * * * * J B K * * * * *
San Francisco
Greece's credit rating was cut three steps to junk by Standard and Poor's, the first time a euro member has lost its investment grade since the currency's 1999 debut. The euro weakened and stock markets throughout the region plunged.
Greece was lowered to BB+ from BBB+ by S&P, which also warned that bondholders could recover as little as 30 percent of their initial investment if the country restructures its debt. The move, which puts Greek debt on a par with bonds issued by Azerbaijan and Egypt, came minutes after the rating company reduced Portugal by two steps to A- from A+.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aibv546ON.7A
