Greek/German 10-yr debt produce widespread widens

nimic

Wed Feb 24, 2010 4:24am EST Related News Greek/German bond yield spread widensTue, Feb 23 2010WRAPUP 1-EU exec says no 20 bln euro aid plan for GreeceMon, Feb 22 2010Greek/German 10-year bond yield spread narrowsMon, Feb 22 2010Greek/German debt yield spread widest in over a wkThu, Feb 18 2010Portuguese bond spreads, CDS narrow as Greek crisis ebbsWed, Feb 17 2010

LONDON, Feb 24 (Reuters) - The premium investors demand tobuy 10-year Greek government bonds rather than German benchmarksrose on Wednesday as jitters over the Greek debt crisiscontinued.

Currencies

Meanwhile, the cost of protecting Greek government debtagainst default rose, according to Credit Default Swap monitorCMA DataVision.

Five-year CDS on Greek government debt rose to 376.0 basispoints from 370.0 bps at the New York close on Tuesday.

It means the cost rises to 376,000 euros to protect 10million euros-worth of Greek government bonds.

Czech Finance Minister Eduard Janota said Greece will findit impossible to slash its budget deficit as fast as promised.[ID:nLDE61N0L9]

A trader also cited worries about the legality of the eurozone providing financial aid to debt-stricken Greece.

"You"ve got the Czech Prime Minister coming out and slatingGreece," said a bond trader in London, adding that there wasongoing concerns that euro zone law makers could block aid forGreece.

The 10-year Greek/German government bond yield spreadGR10YT=RREU10YT=RR widened by 15 basis points on the day to347 bps, the widest since Feb. 9.

Bunds also gained on Greek woes as investors sought saferhaven in German debt. The March Bund future FGBLc1 was up 39ticks on the day to 124.06. (Reporting by George Matlock and William James; Editing byToby Chopra)

Currencies