DZ Bank AG

By Lukanyo Mnyanda

Greek bonds plunged, pushing 10-year yields to the highest this month, as speculation grew that the nation?s financial system may be just weeks from running out of cash.

By David Goodman

Greece?s bonds climbed on Monday, with three-year yields dropping for a third day, amid easing concern that a victory for the anti-austerity Syriza party in this month?s elections would result in the nation leaving the euro region.

German 10-year yields were about three basis points from a record low on Tuesday, outperforming higher-yielding peers, as Greece’s failure to elect a president boosted the anti-austerity opposition’s chances of ousting the government.

Banca Transilvania, the third-largest bank in Romania, is under discussions to take over the Romanian subsidiary of the Austrian banking group Volksbanken, Volksbank Romania SA, two sources close to the discussions have told Bloomberg.

Greek 10-year bond yields dropped to a record 5.57 percent on Wednesday, breaking the previous record of 5.58 percent, set on June 10.

The development is in line with the wider climate that has prevailed in European markets since ECB President Mario Draghi said on Friday that the bank was prepared to respond with all available tools if eurozone inflation drops further.