Greek/German 10-yr yld spread widens above 200bps
LONDON, Dec 7 (Reuters) - The premium investors demand to hold 10-year Greek government bonds rather than euro zone benchmark German Bunds rose above 200 basis points on Monday after Standard & Poor's said it may cut Greece's credit rating.
The yield spread, which had already been under pressure earlier on Monday on worries about Greece's economic fundamentals, hit its widest in a week at 201 basis points, compared with around 174 basis points late last Friday.
The cost of insuring against a default on the Greek sovereign debt rose to 185,700 euros per 10 million of exposure from 181,600 euros in New York trading on Friday, according to credit default swap prices from CMA Datavision.
S&P put Greece's A- sovereign rating on creditwatch negative, meaning that it may cut the rating [ID:nN07162339].
S&P said it expected to make a decision within the next two months, after receiving further information from Greek authorities on their plans to counter intensifying economic and fiscal pressures.
German news magazine Der Spiegel reported on Sunday Greece's ballooning budget deficit and mounting public debt would be discussed at the European Central Bank's Governing Council meeting on Dec. 17.
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