No default on bonds, says Greece

Athens: Greek bonds and credit-default swaps show investors are starting to doubt the nation can reduce the largest budget deficit in the EU without help from outside.

The government bonds are the world’s worst performers in January, losing 4.19% in local currency terms and extending their decline over the past three months to 10%, Bloomberg/EFFAS indexes show.

Credit-default swaps tied to Greece trade at about the same levels as Dubai when it got a $10bn bailout from Abu Dhabi in December. Greek 10-year bonds rebounded after EU Monetary Affairs Commissioner Joaquin Almunia said the country won’t default.