Papandreou: Greece Won't Default, 10y GGB Inflection Point (11.36%)

Greek Prime Minister, George Papandreou, was interviewed on the floor of the NYSE yesterday by Bloomberg TV. In the video he said "We (Greece) are not going to default" and refuted Roubini's claim that Greece was insolvent (read: The Eurozone’s Autumn Hangover - Project Syndicate 9/15/2010).

The 10-Year Greek Government Bond (GGB) is yielding 11.36%, around the May high. It doubled since November 2009 and is now testing trend support. If the 10y GGB yield breaks down, it could violate a few trend lines and retrace. The Greek 5-Year Credit Default Swap closed at 881 basis points, which is still elevated but below the June peak of 1125bps. The CDS appears to be losing strength as well. I'm not quite sure what's going on behind the scenes, but watch the charts for breaking news. Betty Liu interviews Papandreou after the jump.

Also.. Riot Police On Standby, As Greek Truckers Form Massive Protest Blockade (BusinessInsider)




10-y GGB yield inflection point at uptrend (Courtesy of Bloomberg.com)


Full article: Greece Aims for Return to Bond Market as Budget Deficit Shrinks - Bloomberg
More: PM: Greece emerging stronger from the crisis - ana.gr
Greece truck protest snarls traffic - BusinessWeek
Greece clings to investment grade by fingernail: Fitch - MoneyControl

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