VIDEO-Watch out: Greek ‘endgame’ is in sight

In a sign of growing unease about how long Greece can continue to service its debt and meet repayments, yields on Greek benchmark 10-year bonds rose over 50 basis points on Monday, to around 11.42 percent.

The country's main stock index, meanwhile, slipped more than 1 percent, underperforming European markets. However, it then reversed losses to close 1.6 percent higher, on reports that Greece was being "more constructive" in its bailout-for-reforms talks.

"What is coming into focus is an alternative approach. Instead of forcing Greece into a Grexit (a Greek exit of the euro zone), they will simply force Greece into a default – an inability to pay not just the IMF but also internal payments," Anatole Kaletsky, co-founder and chief economist at Gavekal Dragonomics, told CNBC.

"Literally, the Greek government is running out of money to pay its own wages, pensions, public spending," he added. "At that point they have to say: 'We either have to tighten our belts even more than we would under the austerity program or we have to do a deal with the EU'."

DRPM's Malmgren added that the one thing to watch now was the language coming from officials.

"If you look at history of defaults they are all announced in the same way – they're announced as a success, so we just need to anticipate what words they use," she said.

http://www.cnbc.com/id/102686444