Yields jump on new Greek bonds after restructuring (by Sara Sjolin)

LONDON (MarketWatch) -- New Greek bonds issued after the country's 206-billion-euro ($270 billion) bond-swap deal last week started trading Monday at the highest yields in the euro zone, according to media reports. The debt-laden country issued 20 new bonds with maturities between 11 and 30 years and early pricing showed that bonds with the shortest maturity traded at yields around 19%, while the 2042 bond traded at yields around 14%. Analysts said the inverted yield curve indicates that investors remain skeptical of Greece's ability to meet the terms of its second bailout and might need further debt restructuring, the media reports said. Greece succeeded in shaving off more than 100 billion euros from its debt in a bond swap deal Friday, after using collective-action clauses to force some bondholders into the swap. The International Swaps and Derivatives Association said that the use of CACs qualified as a credit event, which requires a payout to those who held credit-default swaps as insurance against a Greek default. The debt restructuring was necessary to receive a second bailout from the European Union and the International Monetary Fund, which is expected to get final approval when the euro-zone finance ministers meet in Brussels later in the day.