Financial Turmoil in Greece : The World Bank Global Macroeconomics Team

Financial turmoil in Greece continued on Friday as inconclusive elections had fueled fears the country may exit the currency’s bloc. The yield on Greek 10-year government bonds climbed 9 basis points (bps) to 9.17%, having surged 194 bps this week, which is the largest weekly rise since the height of the euro-area debt crisis in May 2012. The rout spread to Greek stocks with the country’s benchmark ASE Index heading for the biggest weekly slump since 1987. The Greek stock gauge has declined 20% this week, extending this year’s loss to 29%, making it the worst performer in the world after Russia.