Greek Bonds Plunge on Speculation EU-IMF Aid Plan May Falter

April 6 (Bloomberg) -- Greek bonds slumped, driving the yield premium investors demand to hold 10-year securities instead of German bunds to the most since 1998, on speculation the European Union’s aid plan for the nation may falter.

The yield on the two-year note surged a record 137 basis points after Market News International said Greece wants to bypass International Monetary Fund involvement in the agreement should it require aid because the terms would be too stringent. A Greek Finance Ministry official denied the report. An IMF delegation will start a two-week visit to Athens tomorrow to provide technical assistance at the request of Greek authorities, the fund said today in an e-mailed statement.