Greek Borrowing Costs Jump To Highest Since 2013

Greek borrowing costs continued to rise on Thursday, with the yield on 10-year government bonds jumping to the highest level since July 2013. The yield on the 10-year paper rose 52 basis points to 11.039%, continuing the trend seen after radical far-left Syriza party won Greece's general election on Sunday. Ahead of the election, the 10-year yield was below 9%. The jitters in the Greek bond markets have come as the new government quickly delivered on promises to end austerity and unravel parts of its bailout agreement with international lenders. For example, the Alexis Tsipras administration has already frozen a plan to privatize for the country's biggest port and its leading utility firm, a key part of the bailout terms. Greek stocks have also been hit hard, although the Athex Composite index rebounded 2% on Thursday to 724.93.