Stocks, Greek Bonds, Commodities Fall; Dollar, Treasuries Rise

http://www.bloomberg.com/apps/news?pid=20601087&sid=andolsDDLgus&pos=3

Greek bonds extended losses amid concern the government will struggle to narrow a budget deficit of almost 13 percent of GDP last year, the highest in the European Union. The 10-year note yield rose 41 basis points to a 10-year high of 7.16 percent, adding to yesterday’s 51-basis point surge.

The yield premium investors demand to hold the Greek securities instead of benchmark German bunds increased to 3.96 percentage points. That’s near the highest premium since October 1998, near the time when hedge fund Long-Term Capital Management LP collapsed amid risky bets on bond spreads.