The yield spread between the 10-year Greek and German benchmark bonds shrank spectacularly to 880 basis points in the Greek electronic secondary bond market on Tuesday, from 948 bps on Monday, with the Greek bond yielding 11.70 percent and the German Bund 2.90 percent, following the successful auction of a six-month Treasury bills issue by the Greek finance ministry.
Turnover in the market jumped to 127 million euros of which 103 million were buy orders and the remaining 24 million euros were sell orders. The six-month Treasury bill was the most heavily traded security with a turnover of 37 million euros.
In interbank markets, interest rates remained largely unchanged. The 12-month rate was 1.50 percent, the six-month rate 1.22 percent, the three-month rate 0.90 percent and the one-month rate 0.75 percent.
(ANA)
