The usual story out of Greece today as the country appears to be a little bit closer to a deal with its creditors. This deal will determine how much of a loss the creditors will accept with their bond holdings.
These talks will continue all weekend long and officials said some kind of announcement will occur this weekend. Talks between the two parties have collapsed twice already as the IMF and European leaders want Greece to push for even more debt reduction. If Greece fails to do this, the latest talks could also collapse.
Sources close to the discussions have said that bondholders have made significant concessions towards the interest rate the new Greek bonds would carry. The creditors could accept rates as low as 3.6%.
Major euro financial institutions such as the ECB are calling for more budget cuts and reforms in Greece if the country wants another 30 billion bailout package. This demand comes as major austerity measures have already hit the country amid widespread protests by Greeks.
If this situation continues, volatility could creep back into the market as investors wonder if Europe will ever fix their debt related problems.