Yields on Greek government bonds moved sharply lower in afternoon action on Wednesday after media reports said debt-laden Greece is in the final stages of reaching a deal with its international creditors. Borrowing costs on 10-year Greek debt dropped 65 basis points to 11%, while yields on 2-year paper slid 1.5 percentage points to 23.01%. The lower interest rates came after Greek Prime Minister Alexis Tsipras said he was in the final stretch of agreeing on a reform program with lenders, with details coming soon. For months, the Greek government and its creditors have been locked in a negotiation impasse, with Athens insisting on looser bailout terms and the lenders insisting on austerity measures. A reform program is needed to unblock the next tranche of bailout money for Greece, which is feared to be running out of cash within the next few weeks.
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