U.S., European Stocks, Commodities Decline as Greek Bonds Slump

Greece is more likely to default than all the European Union’s members in eastern Europe, including three that needed International Monetary Fund-led bailouts, credit default swaps show. Investors may demand a yield of as much as 7.25 percent to buy Greek 10-year dollar-denominated bonds, according to Paris- based Axa Investment Managers, which oversees about $669 billion. U.S. equities extended losses after the Federal Reserve said U.S. consumer credit declined by $11.5 billion in February.

“This issue with Greece is still hanging out there,” said Michael Mullaney, who helps manage $9 billion at Fiduciary Trust Co. in Boston. “The debt crisis that’s happening right now in Euroland is causing some consternation with investors.” Read more