Greek/German 10yr debt yield spread widens above 300 bps

LONDON | Tue Jan 26, 2010 5:05am EST

LONDON Jan 26 (Reuters) - The premium investors demand to hold 10-year Greek government debt rather than benchmark German Bunds rose on Tuesday after Greece confirmed plans to issue a 10-year bond via a syndicated deal in February.

Greece aimed to raise 3-5 billion euros from the sale of 10-year paper, Public Debt Management Agency (PDMA) Chief Spyros Papanicolaou told Reuters a day after Greece paid a high premium for the 8.0 billion euros it raised from its first bond sale this year.

The 10-year Greek/German government bond yield spread widened seven basis points on the day to 303 basis points after the comments, Reuters charts showed.

The spread had narrowed below 300 basis points on Monday after Greece showed markets it faced no funding problem following the successful five-year bond sale. (Reporting by Emelia Sithole-Matarise)

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