Spreads on Greek government bond yields and credit default swaps were tighter Monday morning ahead of Greece’s coming three to five billion euro syndicated issuance of a five-year bond, a key test of investor confidence, while the euro is stable.
The yield spreads between 10-year Greek bonds and equivalent German bonds were hovering between 2.90 percentage points and 3.0 percentage points early Monday, below a new record of 3.18 percentage points reached Friday after Greece announced its plans for the deal for this week, and also below Friday’s close at 3.07 percentage points.
Five-year sovereign CDSs stood at 326.3 basis points, according to CMA DataVision. This is around 12 basis points tighter than Friday, in line with the slight recovery in cash spreads.
source: WSJ
