Greek government bond yields rose to fresh multiyear highs on Tuesday, driven by swelling concerns over the future of the country's beleaguered economy ahead of a key meeting of eurozone finance ministers later in the week.

In early trade, the yield on Greece's two-year bonds climbed to over 28%-- a record since being issued--while the yield on the 10-year bonds advanced to just over 13%, their highest level in over two years. Yields rise as bond prices fall.

An inverted yield curve, where shorter-term debt yields more than longer-dated bonds, signals that investors foresee a very high risk of default and a strategist at BNP Paribas wrote in a note that there appears "very little in the way of an imminent deal" between the country and its creditors.

On Monday, Greece's government issued a decree requiring public bodies such as state-owned companies and public pension funds to transfer their cash reserves to the central bank as the country's cash reserves continue to dry up. This appears to have instilled little in the way of confidence in the market.

Peter Dragicevich, an economist at Commonwealth Bank of Australia, said the move simply "highlights the funding strains the Greek government is under," but it changes little.

"We believe the chances for a deal to be reached at the Eurogroup meeting on 24 April have significantly lowered in the past few days," economists at Credit Suisse wrote in a note.

Eurozone finance ministers are due to meet in Riga, Latvia, on Friday. However, a deal on fresh aid is unlikely to be agreed before the Eurogroup meeting on May 11, a day before Greece must pay EUR780 million ($838 million) due to the International Monetary Fund.

The euro came under fresh pressure Tuesday, which several strategists also attributed to growing concerns over Greece.

In early trade, the bloc's currency depreciated 0.7% against the dollar to just over $1.0660.

Since the start of the year, the euro has fallen close to 12% against the buck, though this move has largely been driven by dollar strength as a result of expectations that the U.S. Federal Reserve is paving the way for an interest-rate increase, while the European Central Bank continues to move in the opposite direction.

Higher interest rates broadly make a country's currency more attractive.

Back in debt markets, yields on German government bonds, commonly considered one of the safest assets during times of volatility, have hit record lows practically every day for the past week.

On Tuesday, the yield on the 10-year German bond, or Bund, was just 0.074%, a shade off its all-time low but fast approaching negative territory. Bunds with maturities right out to February 2024 already trade with a yield of less than zero.

In European stock markets on Tuesday, some upbeat earnings helped to offset the Greek concerns, sending the Stoxx Europe 600 1.1% higher in early trade. On Friday, and largely due to Greece, the index suffered its worst single -day selloff in around three months.

In commodity markets, Brent crude declined 0.9% to $62.90 per barrel. Gold was broadly flat on the day at $1,194.20 per troy ounce.

Write to Josie Cox at josie.cox@wsj.com

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