Greek Spreads Tighten Ahead of Syndicated Issuance

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

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza