STOCK MARKET WATCH -- Thursday, 30 October 2014

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23. Greece’s Euro Dilemma Is Back as Minister Sees Volatility

http://www.bloomberg.com/news/2014-10-30/greece-s-euro-dilemma-is-back-as-minister-signals-volatil.html

Greek bond investors face a rollercoaster ride for the next four months as the government tries to contain the risk of snap elections, Minister of Administrative Reform Kyriakos Mitsotakis said.

Prime Minister Antonis Samaras has until February to pull together a supermajority in the national parliament to elect a new president or the anti-bailout opposition party Syriza will force a snap election. That would return Greek voters to their 2012 dilemma when the country’s membership of the single currency hung by a thread, Mitsotakis said in an interview.

“The reality is that there will be a climate of uncertainty until February,” Mitsotakis, 46, said in his Athens office overlooking the Acropolis. “Volatility is caused by the fear of snap elections and the possibility that these will be won by a party which is not normal.”

Greek government bonds plunged today, with yield on the country’s 10-year benchmark note rising 55 basis points to 8.12 percent at 12:48 p.m in Athens, the biggest jump in two weeks. The selloff started in September when Samaras moved to sever the international lifeline that has kept Greece afloat since 2010 and ended a two-year rally in Greek government notes.