Greece and Germany appear to be playing a game of financial chicken. The question is whether that means stocks are set to get roasted.
Reuters, citing a source, reported Tuesday that Greece is set to run out of money by April 20 if it doesn't receive more financial aid.
A plan is on the table for the European Union to provide Greece with an infusion of euros, but German Chancellor Angela Merkel insists that Greece pledge to institute reforms before the money is handed over. A meeting Monday between Merkel and Greek Prime Minister Alexis Tspiras appeared to produce little in the way of tangible compromise.
U.K. Chancellor of the Exchequer George Osborne said Tuesday that "ill-will" between Greece and the rest of the EU is raising the chances of Greece leaving the union.
"The key point to keep in mind here is that this has been an exercise in brinksmanship, and the brink (when Greece runs out of money) is approaching," said Brown Brothers Harriman global head of currency strategy Marc Chandler in a note Tuesday.
As the stakes rise, Greek bond yields do so, too, given that they price in greater and greater risk of a default. Greek 2-year bond yields have doubled in 2015.