Greek two-year bond yields drop sharply on hopes of deal with IMF
Greek bond yields dropped sharply on reports that the country's euro area lenders and the International Monetary Fund might be closer to agreeing on the next steps which the government in Athens must take.
As of 1422 GMT the yield on the benchmark two-year note issued by the government in Athens was falling by 135 basis points to 8.67%.
Early on Friday, Bloomberg had reported that Greece's creditors might present it with remedial measures worth 2.0% of gross domestic product which would be asked of Athens if it did not meet its budget targets under its current bailout arrangement.
Significantly, the fact that the IMF might be on board meant the chances of the Greek government receiving the next tranche of financing it so sorely required was now higher.
Greek finance minister Euclid Tsakalotos was scheduled to meet the chair of the Eurozone group of finance ministers, Jeroen Dijsselbloem, later on the same day.
Nonetheless, Dijsselbloem cautioned that: "the discussions today are not about debt easing."
The euro area's finance chief also reiterated that debt relief for Athens would only be possible in 2018, once its present financial bailout programme had concluded.