Greece PM: Reports Of Greek Bond Buy By China "Wrong"
DAVOS, Switzerland (MNI) - Recent media reports that China would buy up to E25 billion worth of Greek sovereign bonds are "wrong," Greece's Prime Minister George Papandreou said here Thursday.
Speaking on a panel that included European Central Bank President Jean-Claude Trichet, Papandreou said that Greece has "not asked for money anywhere else." He added: "We are in a jittery time" in which "rumors can create problems."
Indeed, on-again, off-again rumors of a large Chinese bond buy, as well as about a possible eurozone-wide bailout for Greece, have whipsawed Greek sovereign debt in financial markets this week.
The spread on Greek 10-year bonds earlier today hit a new post-EMU record against German Bunds, soaring well above 370 basis points. Then, after a newspaper report said eurozone members were working on a bailout for Greece, the spread narrowed briefly to below 370. After the German Finance Minister aggressively denied the report, the spread blew out again, setting a new record at 380 basis points.

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