Greece’s budget deficit reached 15.4% of their GDP in 2009. This led to a panic of default, and widened the 10-year bond yield spread. From 2010 to 2012 (shaded in red below), 10-year bond rates surpassed 35%. Rates fell again in 2012 after private bondholders agreed to a vast debt restructuring that exchanged 77 billion euros in bonds for 75% less debt.
