Thursday, April 08, 2010

Euro Bonds Spreads: Greece at Record

by Calculated Risk on 4/08/2010 05:20:00 PM

Here is a graph from the Atlanta Fed weekly Financial Highlights released today (graph as of April 6):

Euro Bond SpreadsClick on graph for larger image in new window.

From the Atlanta Fed:

European bond spreads (over German bonds) reflect
investors’ worries about Greece’s sovereign credit risk.

On April 6, the spread of the 10-year Greek bond over its German counterpart widened by 72bps to 404.5 bps, the widest since 1998, according to the Wall Street Journal.
According to The Times: Greece on the brink as bond rates surge to record highs the Greek Bond spread increased to an all time record 463 bps today (shown on graph in red).

There is very little change for the other PIIGS (Portugal, Italy, Ireland, and Spain), although the UK spreads suggest we might need to add a "U" to "PIIGS".