World

Fears that Greece is on the brink of a default send the country's bond yields soaring

A woman stands inside a shop behind stickers depicting butterflies with the colors of the Greek flag in Athens, on Wednesday, April 15, 2015. Greece’s new left wing-led government has been locked in strained negotiations with creditors since winning elections in January on pledges to abolish the deeply resented budget austerity measures required by the rescue program. (AP Photo/Yorgos Karahalis)

A woman stands inside a shop behind stickers depicting butterflies with the colors of the Greek flag in Athens, on Wednesday, April 15, 2015. Greece’s new left wing-led government has been locked in strained negotiations with creditors since winning elections in January on pledges to abolish the deeply resented budget austerity measures required by the rescue program. (AP Photo/Yorgos Karahalis)  (The Associated Press)

Mounting fears of a Greek debt default have sent the country's borrowing costs in the markets surging higher.

The latest jitters were stoked by a report Thursday in the Financial Times that Greece made an "informal approach" to the International Monetary Fund to have its bailout repayments delayed.

Citing unnamed officials from both sides, the newspaper said Athens was persuaded not to make a request. For investors, the report was unsettling and the yield on Greece's 10-year bonds surged a whole percentage point to just under 13 percent.

Greece owes the IMF around 1 billion euros ($1.06 billion) in repayments next month. Many in the markets think the Greek government will struggle to make those payments if it doesn't agree an economic reform package with European creditors soon.