Spreads on Greek government bond yields and credit default swaps were tighter Monday morning ahead of GreeceÃ¢â‚¬â„¢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 FridayÃ¢â‚¬â„¢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.
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