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Monday, April 26, 2010

Greece: 10-Year debt yield spread widens to new record

by Calculated Risk on 4/26/2010 08:36:00 AM

From The Times: Pressure mounts on Greek Government as cost of borrowing rises above 9 per cent

The bond markets hammered Greek government debt this morning, raising the cost of borrowing for the eurozone nation above 9 per cent.
From the WSJ: Cost of Insuring Greek Debt Soars
[T]he gap in yields between 10-year debt from Greece and Germany—the euro-zone's most solid borrower—swinging out to a new record of 6.11 percentage points. That yield spread stood at 5.63 percentage points after Greece asked to activate the aid package Friday.
On May 19th, €8.5bn of Greece's bonds mature - so there is very little time left to work out the details of a loan package.