The yield spread between the 10-year Greek and German benchmark bonds shrank further to 834 basis points in midday trading on the Greek electronic secondary bond market on Thursday, down from 840 bps at the opening and around 1,000 bps on Monday, following a spectacular decline in bond spreads in other regional European countries.
Expectations that the EU will agree on measures to finally deal with a debt crisis hitting regional Europe, have significantly improved market sentiment, allowing European governments to smoothly auction state bond issues in the last few days.
ANA-MPA
