There has been a nervous reaction across markets amid growing concerns Greece will default on its debt and Standard and Poor’s downgrading.

The yield on Greece’s 10-year bonds rose a percentage point to 13%, while Greek three-year bond yields leapt more than than 3.5% to about 27%.

Concerns over Greece’s future are contagious economist Napolean Maravegias told euronews.

“Does it makes me worry? Obviously, I do worry and not just as an economist but I think every Greek citizen worries. Every setback to striking a deal with our lenders makes things more difficult if the market is “drying up”.”

Greece is due to pay the International Monetary Fund around 1-billion euros next month and concerns over its ability are spreading on the streets.

Trader Takis Zamanis said: “It shows that the markets think that we are on the verge of bankruptcy. This is the prevailing opinion of the market, over the last few weeks and we can see that with high interest rates and the way transactions are