Statement Follow To Greek Finance Minister Varoufakis Resignation.LIVE

From The Tweet: Long term, Greece’s referendum has already set a bad precedent for any reforms or austerity needed in the next crisis, say Citigroup rates strategists Harvinder Sian and Peter Goves. Moreover, a default inside the eurozone by Greece also sets a bad precedent for political extremes in a number of countries, despite the economic pain, they add. A Grexit would also infer added risk premium for eurozone periphery in the medium term. As for periphery bonds, “we want to buy on weakness,” they write in a note.



Investors move into safe-haven securities following the Greek rejection of bailout terms, pushing higher Japanese government bond prices. The benchmark 10-year JGB yield, which moves inversely with prices, is down two and a half basis points at 0.455% as of 0030 GMT, the lowest in four sessions. But the debt market is nowhere near a panic, with investors well-aware that Japan has no close economic or financial ties with Greece. “It will be after the overseas markets react” if and when the JGB market is to make any serious moves, says Bank of America Merrill Lynch bond strategist Shuichi Ohsaki. The 10-year yield may fall further in the coming hours, but its downside below 0.450% will likely be limited, he adds.