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Peripheral euro zone debt yield spreads vs Bunds widen

Fri Nov 27, 2009 3:47am EST

LONDON, Nov 27 (Reuters) - The premium investors demand to hold 10-year peripheral euro zone government bonds rather than benchmark German Bunds rose again on Friday, with the premium on Greek debt at seven-month highs on rising risk aversion.

Ten-year Greek bonds GR10YT=RR yielded 215 basis points over equivalent-maturity Bunds EU10YT=RR, compared with 208 bps in late European hours the previous trading day.

The yield spread was at its widest since late April, according to Reuters data.

The equivalent Italian spread widened to 96 basis points, matching July 23 levels while the Irish spread expanded to 177 basis points, its biggest gap since late July.

Peripheral spreads have been on the ropes this week on concerns about Greece's fiscal problems with risk aversion intensifying on Dubai's debt crisis. (Reporting by Emelia Sithole-Matarise) ((Reuters Messaging: emelia.sithole.reuters.com@reuters.net, Email: emelia.sithole@thomsonreuters.com; +44 20 7542 6752))


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