Cyprus Contagion Spreading: Greek Bonds Plunge Most Since Bailout
The no-brainer trade of the year is hitting a wall of reality in the last few days. Greek government bonds (GGBs), levitated on a sea of central bank excess and a plethora of promises, are coming back to earth rapidly as the fears of their Mediterranean brethren spreads contagiously to other bond markets. Spain and Italy are suffering notably today also but it is the almost 7% drop in the price of GGBs instantly removing all 2013 gains that is the most worrisome... This is the largest price drop since the March 2012 bailout 'success'.
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