10-yr Spanish/German spread widest since mid-Oct

LONDON | Fri Nov 20, 2009 3:57am EST

LONDON Nov 20 (Reuters) - The premium investors demand to hold 10-year Spanish government bonds rather than euro zone benchmark German Bunds rose to its highest in about five weeks amid a general cooling of investor appetite for higher-risk bonds.

Ten-year Spanish bonds ES10YT=RR yielded 60 basis points over equivalent-maturity Bunds EU10YT=RR, compared with 56 bps in late European hours the previous trading day.

The yield spread was at its widest since Oct. 16.

Equivalent Italian and Greek spreads also widened as peripheral euro zone sovereign debt suffered from concerns about the fiscal health of some of countries, particularly Greece.

(Reporting by Emelia Sithole-Matarise)

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