* Greek official says deal to repay IMF loans imminent
* Greek 10-year yields hit new 13-year low on Monday
* Improving mood keeps Bund yields at three-week high
* Euro zone periphery govt bond yields (Updates pricing, adds chart)By Abhinav RamnarayanLONDON, April 15 (Reuters) - Greek government bond yieldswere closing in on record lows on Monday after an official saida deal to repay International Monetary Fund loans is imminent,which would mark another step forward from the Athens debtcrisis.Greece will this week seek the consent of the EuropeanStability Mechanism -- the euro zone's bailout fund -- for theearly repayment of IMF loans worth about 3.7 billion euros, asource close to the process told Reuters. Greece's benchmark 10-year government bond yield slipped three basis points to 3.27 percent, its lowest sinceSeptember, 2005 and approaching the record low of 3.203 percent.
Five-year yields also reached a 13-year low of 2.15 percent .
"If they do accomplish the early repayment, that helps themreduce the interest rate burden, and adds to what has been quitea good performance story," said Commerzbank rates strategistChristoph Rieger.
Sources told Reuters that Greece is planning a bond issue inlate June to raise money for the repayment. Most other 10-year euro zone bond yields rose to new three-week highs after Europe and China released improved data latelast week. French 10-year government bond yields were last upjust over two basis points to 0.42 percent, while the Spanishequivalent was last up three basis points to 1.08 percent.German 10-year yields, the benchmark for the region, hit adays high of 0.08 percent which is also a 3-1/2 week high. "We have had some positive data surprises both in Europe andin China last week, and that takes the edge off the macro fears.And you also have some positive undertones on U.S.-China tradetalks and you don't have this Brexit cliff edge anymore," saidING rates Benjamin Schroeder.
He added, however, that the six-month Brexit extension isunlikely to change central bank plans as they have a longer-termhorizon.Euro zone industrial output declined in February but by lessthan expected, as mild weather meant a surge in energyproduction at the start of 2019 reversed. "What this (rise in Bund yields) highlights is thatexpectations have moved dramatically lower in terms of economicactivity - so any sign of a stabilisation does challenge theconsensus," Mizuho strategist Antoine Bouvet said.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Greek bonds drop towards record lows ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Abhinav Ramnarayan; additional reporting byVirginia Furness and Sujata Rao; editing by Larry King and EdOsmond)