Greek yields jump as bond sale draws modest demand

LONDON, July 10 (Reuters) - Greek bond yields extended their rise on Thursday with traders citing investor disappointment with initial demand for a new three-year bond Athens is selling via a syndicate of banks.

Order books for the bond have topped 3 billion euros, according to IFR, a Thomson Reuters service. When Greece sold a five-year bond back in April orders reached over 20 billion euros.

Bailed-out Greece is aiming to raise up to 3 billion euros from the new bond, its second bond sale after it defaulted in 2012.

Greek 10-year bond yields were up 14 basis points on the day to 6.25 percent, underperforming the rest of the euro zone debt market.

Yields on bonds issued by peer Portugal were up 13 bps at 3.94 percent, remaining under pressure amid concern over a proposed debt restrcturing by a holding company of the founding family of Banco Espirito Santo (BES), the country's largest listed bank.

(Reporting by Emelia Sithole-Matarise and Marius Zaharia; Editing by John Geddie)