The Greek spread soars and flies beyond all limits, reaching an all-time record of 1.582 basis points. The yield on Greek bonds reached an incredible 17,97%. At the same time, the Italian spread remains stable at around 284 bp, while the Spanish spread is just below 280.
The yield differential between ten-year Greek government bonds and the corresponding German Bunds thus widens again despite the fact that the market is now illiquid, given the high risk of insolvency linked to the conditions of the Athens coffers. The new debate that has flared up on the guarantees that the country should provide to its European allies in order to collect the new 160 billion tranche of the bailout plan weighs heavily on the accounts.
A dispute born from the intransigence of Finland, which has said it is willing to participate in the operation only if Greece sets aside a certain amount in a restricted deposit. Money that would end up in Helsinki if Greece does not keep the promises made regarding the program of fiscal consolidation.
