Debt fears hit Greek bonds

Greek sovereign bonds suffered a sharp sell-off yesterday as investor concerns over the country’s financial health flared up again. The price of seven-year bonds issued on Monday dropped as a new issue of 12-year paper struggled to find buyers. Investors remain worried that Germany might refuse to give financial aid if Greece fails to meet its targets for reducing the deficit later in the year. Greece must raise €35bn ($47bn) of debt this year to avoid a bail-out. It has sold €18bn so far.