Wednesday, April 21, 2010

Interest Rates on PIIGS Debt Soars

Greek government bond yields are at the highest levels since the country joined the eurozone 12 years ago, with the yield on 10-year bonds climbing 42 basis points to 8.28 per cent as concerns mount over a bail-out package from the International Monetary Fund and whether a debt restructuring can be avoided, reports FT.
Portugal's 10-year government bond yields hit highs of 4.82 per cent, a climb of 21bp. Portugal’s 10-year government bonds previously peaked at 4.77 per cent in February.

Credit default swap spreads continued to widen on Greek debt. The five-year CDS reaced an all-time high of 475bp.

Portugal spreads widened 16bp to 215bp

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