Greek Borrowing Costs Spike As Reform Talks Begin

Funding costs for the Greek government jumped on Wednesday as detailed talks about a reform program got underway Brussels. Greece and its international lenders need to agree on a range of economic reforms in order to unlock the next tranche of bailout money, or the country is at risk of running out of cash later this month. Yields on 2-year Greek government paper surged 1.81 percentage points to 17.67% on Wednesday, while the interest rate on 10-year debt rose 38 basis points to 10.56%, according to electronic trading platform Tradeweb. Eurozone finance ministers have indicated that Greece's reform suggestions aren't comprehensive enough, urging the government to stop wasting time. The lack of funding is adding pressure on Greece's social-security system, according to the Financial Times. The paper reported earlier this week that the Syriza-led government is asking the country's social-security funds to hand over hundreds of millions of euros to safeguard pension and salary payments in March.