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29 Jun 2015
Greek ten-year yield at 2-1/2 year highs as investors turn risk averse
FXStreet (Mumbai) - The yield on the benchmark 10-year Greek bond rose more than 300 basis points on Monday after the country imposed capital controls and announced bank closure for a week.
The 10-year yield currently trades at 367 basis points higher at 14.547%, its highest since December 2012. Though the liquidity in Greek bonds is low, still the picture appears grim. The two-year yield is up more than 1000 basis points at 33.355%. The yield curve maintains the inversion that has begun in Q1 2015.
Investors running to safety – periphery yields rise, German yields drop
German government bonds surged with the yield dropping the most since November 2011. German 10-year bund yields fell 20 basis points,to 0.72%. Meanwhile, Portuguese , Italian and Spanish 10-year yields climbed over 30 basis points.
Over the weekend Greek Prime Minister Alexis Tsipras shocked Greece’s creditors by announcing the country will hold a referendum on July 5, on whether to accept the terms of Greece’s creditors to unlock desperately needed financial aid.
The current bailout program is set to expire on June 30.
The 10-year yield currently trades at 367 basis points higher at 14.547%, its highest since December 2012. Though the liquidity in Greek bonds is low, still the picture appears grim. The two-year yield is up more than 1000 basis points at 33.355%. The yield curve maintains the inversion that has begun in Q1 2015.
Investors running to safety – periphery yields rise, German yields drop
German government bonds surged with the yield dropping the most since November 2011. German 10-year bund yields fell 20 basis points,to 0.72%. Meanwhile, Portuguese , Italian and Spanish 10-year yields climbed over 30 basis points.
Over the weekend Greek Prime Minister Alexis Tsipras shocked Greece’s creditors by announcing the country will hold a referendum on July 5, on whether to accept the terms of Greece’s creditors to unlock desperately needed financial aid.
The current bailout program is set to expire on June 30.