The spread between Greek and German 10-year bonds fluctuated between 4 and 4.4 percentage points on April 8, marking the greatest difference since Greece joined the eurozone. The yield on Greek government bonds reached 7 percent — meaning that interest rates charged to Athens for loans are on the rise, and the government's ability to rein in a massive budget deficit will be increasingly challenged. The fiscal strains exacerbate fractures within the EU, which has been severely divided over how best to respond to the crisis in Greece and other Mediterranean states in the eurozone.
