LONDON, April 28 (Reuters) - The premium investors demand to hold 10-year Greek government bonds rather than benchmark German Bunds topped 10 percentage points on Wednesday as investors fretted over Greece’s rating downgrade the previous day.
The Greek/German bond yield spread was at 1,021 basis points GR10YT=TWEBDE10YT=TWEB, compared with 690 basis points at the European settlement close on Tuesday.
The 10-year Greek bond yielded 13.1 percent, its highest since mid-1996 and nearly three times the level at which the European Union plans to offer aid to the debt-stricken country.
The jump in yields came as the market absorbed a well-received auction of 6 billion euros of new 10-year 3.0 percent July 2020 Bunds.
Reporting by George Matlock