LONDON Feb 7 Greece's two-year government bond
yield soared to its highest level in more than seven months on
Tuesday on growing worries over whether the European Union and
the International Monetary can reach an agreement over a third
Two-year yields spiked over 100 basis points to within
striking distance of 10 percent, according to Reuters
data. The yield on a short-dated Greek bond maturing in July
rose to a one-year high near 16 percent.
In its annual review of Greece's economic policies, the IMF
said on Monday that most of its board directors favoured a Greek
fiscal surplus target of 1.5 percent of gross domestic product
by 2018, while some directors favoured the higher 3.5 percent
target sought by Greece's European lender group.
The rare split among IMF directors reveals some divisions in
their views of Greece's fiscal performance and debt
sustainability as the Fund considers whether to participate in
the new bailout for Greece needed by mid-2018.
(Reporting by Dhara Ranasinghe, editing by Nigel Stephenson)