The markets took fright on Tuesday morning at renewed prospects of a Greek debt default, which sent Greek bonds down by nearly 2%.<br /><br /> The two-year bond now yields 24.94%, a barely sustainable level, while 10-year paper yields 11.83%.<br /><br /> A growing list of senior members of the government have openly said Athens does not have the means to pay the IMF, and would prioritise paying civil servants and pensioners instead.<br /><br /> However Greece’s creditors have linked reforms and more austerity to the latest slice of their aid package. Without it there’ll be no new money, and Greece will be broke.
