The Greek 10-year bond yield surpassed the 13 pct level for the first time since 1998 in the Greek electronic secondary bond market on Thursday, pressured by intensifying speculation over a restructuring of the country’s debt. The two-year bond yield jumped to 17.8 pct, while uncertainty over the sustainability of the Greek debt pushed Greek CDS (Credit Default Swaps) above 1.06 pct.
The yield spread between the 10-year Greek and German benchmark bonds widened to 996 basis points from 939 bps on Wednesday, with the Greek bond yielding 13.36 pct and the German Bund 3.40 pct. Turnover in the market was an improved 231 million euros, boosted by the intervention of the European Central Bank in the market with the aim to ease tensions. A total of 202 million euros were sell orders and the remaining 29 million were buy orders. The five-year benchmark bond was the most heavily traded security with a turnover of 97 million euros.
In interbank markets, interest rates moved slightly higher. The 12-month rate was 2.10 pct, the six-month rate 1.62 pct, the three-month 1.33 pct and the one-month rate 1.15 pct.