Greek borrowing costs hit record high

Greece's borrowing costs have spiked higher for a third day, intensifying the country's debt crisis and suggesting a eurozone rescue program is providing little support.

The interest rate gap, or spread, between Greek 10-year government bonds and the German equivalent, considered a benchmark of stability, spiralled to record highs on Thursday.

In wildly oscillating morning trading, spreads were jumping between 4.01 and 4.29 percentage points.

The higher interest rates demanded by bond investors are potential poison for the Greek budget; unless they fall, the government will pay a premium to borrow and face a vicious cycle where higher borrowing costs fuel fresh default fears.