Courtesy of Mish.
Since the beginning of September, yield on the Greek 10-Year bond has gone from 5.53% to 8.05% with a spike high of 9.28%.
Inquiring minds may be wondering what’s going on. More than likely yields are up for a number of factors.
- Rise of Syzria
- Chance of new elections
- Greece needs another bailout
Points number 1 and 2 go hand in hand.
Alexis Tsipras, head of the Greek radical-left party Syzria is in a substantial lead in the polls. Syzria wants to end austerity and threatens to renegotiate the bailout.
The next election for prime minister is not scheduled until June 2016, but a February 2015 presidential election (a largely ceremonial position) threatens to upset the cart. Greek law requires a backing of 180 members of parliament to nominate a president, but support for current prime minister Antonis Samaras has dwindled to only 150 seats.
If Samaras falls short, parliament will dissolve and then a new election for prime minister will take place.
Syriza Leader Prepares for Power
Given the above election backdrop, Syriza Leader Alexis Tsipras Prepares for Power.
Alexis Tsipras, leader of Greece’s far-left Syriza party, recently traveled to Frankfurt and Rome to meet European leaders. He is softening his confrontational tone with Greece’s international lenders. Tsipras has a drafted an agenda for the first 100 days of a future government.
The 40-year-old former student Communist is acting like a prime minister in waiting.
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