April 19, 2010 / 9:08 AM / 10 years ago

Greek bond yield spread at new euro lifetime high

LONDON, April 19 (Reuters) - The premium investors demand to buy Greek government bonds rather than German benchmarks rose to record levels on Monday as uncertainty over the implementation of an aid package for debt-stricken Athens unsettled investors.

Talks in Greece with the European Union and International Monetary Fund over the possible implementation of the emergency loan package were delayed by the volcanic ash cloud affecting air travel throughout Europe. [ID:nLDE63H0KZ]

The Greek/German 10-year government bond yield spread GR10YT=TWEB DE10YT=TWEB widened to 469 basis points, a new euro lifetime high, up 26 basis points from Friday’s settlement close.

Five-year credit default swaps (CDS) on Greek government debt rose to 462.4 basis points versus 438.2 at Friday’s New York close, according to CDS monitor CMA DataVision.

This means it now costs 462,400 euros to protect 10 million euros of exposure to Greek bonds - close to the intraday record high of 470,000 euros hit earlier in April.

The Portuguese/German spread also widened to 151 basis points, its widest since February, 13 bps wider on the day.

Portuguese CDS rose to 204 basis points, up from 195 bps on Friday.

Reporting by London markets team

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below