Greek 2 & 10 year government bonds
Greek 2 & 10 year government bonds and Portuguese 10 year yields reached records today, even after Greek officials said restructuring isn’t being discussed after an Athens newspaper leaked an eariler story. Spain sold 12 % 18 month Treasury bills while Belgium auctioned bonds due in 2013, 2021 and 2041.
Greek two-year note yields were 85 basis points higher at 19.36 % this morning in the UK. The 4.6 % security due May 2013 fell 1.10, or 11.0 euros per 1,000 euro ($1,433) face amount, to 76.50. Ten year bond yields rose 25 basis points to 14.08 %.
The yield difference between Greek 10 year bonds and German securities widened to 1,061 basis points and the 10 year bund yield fell four basis points to 3.34 %. It earlier slipped to 3.33 %, the lowest since March 31. Two year yields were also four basis points lower, at 1.81 %.
Portuguese 10-year bonds fell, pushing the yield as much as 28 basis points higher to 9.28 %. Greek CDS increased 56 basis points to 1,211, signaling a 64.5 % chance of a default within five years, while contracts tied to Portugal’s debt climbed 16 basis points to 614.
Spain sold 3.5 billion euros of 12 month Treasury bills at an average yield of 2.77 %, the issue was overbid 1.63 times. It also sold 1.15 billion of 18 month bills at an average yield of 3.364 %.
