All the latest economic and financial news, as talks between Greece and her creditors resume in Brussels with just days to go until IMF repayments are due Introduction: Greek officials to meet lenders againEuro hit by Greek jittersGreek bond weaken after Varoufakis blames creditorsSpanish bonds drop after regional election 9.22am BST Greece’s two-year bonds are now at their weakest level in a month:Greek 2yr yields jump to almost 25% on more Greek noise. #ECB’s Hansson says agreement on #Greece ‘not in sight’ yet. pic.twitter.com/83UPNUBC3Q 9.07am BST Greek bonds are falling this morning, pushing yields (the rate of return on the debt) higher into the danger zone.Some in the City are blaming Greek finance minister Yanis Varoufakis, who yesterday pointed the finger at Greece’s creditors for the lack of progress.The problem is simple: Greece’s creditors insist on even greater austerity for this year and beyond – an approach that would impede recovery, obstruct growth, worsen the debt-deflationary cycle, and, in the end, erode Greeks’ willingness and ability to see through the reform agenda that the country so desperately needs.Our government cannot – and will not – accept a cure that has proven itself over five long years to be worse than the disease.Fair-minded observers of the four-month-long negotiations between Greece and its creditors cannot avoid a simple conclusion: The major sticking point, the only deal-breaker, is the creditors’ insistence on even more austerity, even at the expense of the reform agenda that our government is eager to pursue.Greece 10 years up 46bp this morning to 11.83% - the mkt hated Varoufakis's article and the big split in SYRIZA adding to concerns. 8.42am BST Traders are also blaming Klaus Regling, the head of the European Stability Mechanism, for today’s euro selloff.“There is little time left... That’s why we’re working day and night for an agreement. Without an agreement with the creditors, Greece will not get any new loans. Then there’s a threat of insolvency. There are a lot of risks contained in that,” 8.36am BST Newsflash from Madrid; Spanish bank shares are falling, as last weekend’s regional election results ripple through the markets.At a local level, the PP faces a new era of coalition and compromise for which it is ill-prepared.Rajoy - whose party must form pacts with some of the new groups if it is to retain power in a number of regions, including Madrid - has campaigned hard against them. Earlier this month he said they were “gangs” and a threat to Spain’s political and economic stability. 8.30am BST The euro is continuing to lose ground, and is now down 0.85 of a cent against the US dollar at $1.089.It’s not just about Greece, though. The dollar is romping ahead against most currencies this morning, on speculation that US interest rates will rise soon. 8.21am BST Spanish government debt is falling in value too, after anti-austerity activists secured a stunning victory in last weekend’s regional elections. Related: Spain's indignados could rule Barcelona and Madrid after local election success 7.58am BST The euro is losing ground against almost every major currency today:EURUSD 1.0909. pic.twitter.com/cOTbJ5PYCh 7.57am BST Fears over the Greek bailout have pushed the euro down to a one-month low this morning.The single currency has fallen by over half a cent against the US dollar to $1.0909, its lowest point since late April. “The Greek political saga will remain in the spotlight as the deadline for payments to the IMF approaches”,“A light data calendar and continued political uncertainty in Greece should continue to weigh on the euro.” Related: Greece warns it is set to default on debt repayment loans “It would not be a catastrophe to exit the euro, (nor) a terrorist act not to pay the next instalment to the IMF.” 7.46am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Amid mounting fears of financial collapse, Tsipras instructed officials to act speedily as his government sought to defuse tensions saying it would do its best to honour its debts – even if it failed to reveal how, exactly, it would find the money to pay €1.6bn in loans to the International Monetary Fund next month.“We are very close to a deal,” the finance minister Yanis Varoufakis told reporters. “There are many different Germans, just as there are many different Greeks,” he said responding to reports that Berlin would not be prepared to retreat in what has become an all-out tug of war between the two governments. Related: Greek PM convenes emergency meeting of his bailout negotiation team Our European opening calls: $FTSE 7037 up 5 $DAX 11782 down 33 $CAC 5101 down 16 $IBEX 11259 down 64 $MIB 23269 down 17 Related: First Libor defendant faces trial in London Continue reading...
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