Short Term Trading Member Forum

[techcharter]

Greek 1 Yr Yields Skyrocket

After last week's announcement of a tentative financial rescue of Greece, yields on their 1 yr bond plunged from 194% to the 155% area. Today yields overshot the highs and are now at 203%. The bond market believes the rescue effort won't work. Why should it?

1.) The devil wrote the rescue package. The rescue fund managers would be immune from any investigations by any country's government, from legal prosecution, and able to demand unconditionally countries pay into the fund within a 7 day window. This is an overt attempt to take away some sovereignty from countries in the EuroZone.

2.) German taxpayers find it unfair that their wealth go to people who are financially irresponsible.

3.) The Greek government decided to hold a referendum on accepting a financial rescue. Greeks understand the points made in line 1, and will reject the rescue.