LONDON, Dec 10 (Reuters) - The premium investors demand to hold Greek government bonds rather than euro zone benchmark German Bunds fell on Thursday after comments from European Central Bank officials and billionaire financier George Soros.
Soros told Sky News television he was sure the Greek government would not be allowed to default on its debts despite growing budgetary difficulties and market concerns.
His comments came after ECB Governing Council member Ewald Nowotny said worries about Greece's finances will not split the euro zone and Governing Council member Yves Mersch said he felt confident the Greek authorities were aware of the gravity of the situation and would put in place necessary measures.
The 10-year Greek/German government bond yield spread GR10YT=RREU10YT=RR tightened to 239 basis points, after earlier blowing out to 267 basis points -- the widest since April.
Other euro zone peripheral spreads over Bunds were also off their widest levels reached earlier in the session. (Reporting by Ian Chua)