The Best Way To Gauge How Things Are Going With Greece’s Bailout Negotiations

Across Europe, traders’ screens were a sea of green today, with Greece—of all places—glowing brightest. Greek stocks and bonds rallied big on news that (finally, mercifully) the country may be close to agreeing a deal to extend its bailout agreement.

Euro zone finance ministers met in Brussels to consider a revised set of reform proposals from Athens in return for much needed funds. A deal could be sealed as early as this week, finance ministers suggested, sparking a late rally in markets across Europe. Heads of euro zone governments are also meeting today, in a hastily arranged session ahead of a full EU summit that begins on Thursday (June 25).

The clearest indication that the markets sense a deal can be seen in Greek banks—the banking sector index in Athens jumped more than 20% today (while the broader market rose by 9%). Still, Greek stocks remain in the red for…