The markets took fright on Tuesday morning at renewed prospects of a Greek debt default, which sent Greek bonds down by nearly 2%.
The two-year bond now yields 24.94%, a barely sustainable level, while 10-year paper yields 11.83%.
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.
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.