Greek Bond Buyback Going Better Than Expected

Hopes improve that it can cut its debt

Greece said it would spend 10 billion euros to buy back bonds at a price range that topped market expectations, boosting hopes it can cut its ballooning debt and unlock long-delayed aid.

A successful buyback is central to the efforts of Greece's foreign lenders to put the near-bankrupt country's debt back on a sustainable footing and would clear the way for the funding Athens needs to avoid running out of cash.

Hopes the deal would attract enough investor interest to cut debt by the targeted 20 billion euros—about 11 percent of gross domestic product rose after the government offered a premium to market prices, sparking a rally in Greek bonds.