Speculation over a debt restructuring and European Central Bank’s confirmation of a report saying it would not accept Greek state bonds as collateral if Greece moved with an extension of the maturity of the bonds, created a very negative climate in the domestic electronic secondary bond market. The yield spread soared to a new record high of 13.57 pct on Friday, from 12.80 pct on Thursday, with the Greek bond yielding 16.62 pct and the German Bund 3.05 pct.
Turnover in the market was an improved 68 million euros, of which 52 million euros were sell orders and the remaining 16 million euros were buy orders. The five-year benchmark bonds was the most heavily traded security with a turnover of 31 million euros.
In interbank markets, interest rates were largely unchanged. The 12-month rate was 2.15 pct, the six-month rate 1.71 pct, the three-month rate 1.43 pct and the one-month rate 1.24 pct.