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5 May 2015
Greek yields rise sending german yields lower
FXStreet (Mumbai) - The yields on the short duration and long duration Greek debt short higher on Tuesday as markets see a low possibility of Greek deal at the May 11 Eurogroup meeting.
The Greek 10-year yield shot higher by 39.4 basis points to 11.08%, while the 2-year yield rose 76.2 basis points to 20.852%. German finance minister Schaeuble said on Tuesday that Greek liquidity appears to be getting tighter. He added that Greek talks with its creditors have been more constructive recently, but maintained that major part of the adjustment has to come from Greece in order for the deal to be reached.
Meanwhile, the German 10-year yield declined for the first time after three consecutive sessions of gains. The 10-year yield fell to a low of 0.406%, before recovering to trade at 0.442%. Rising Greek yields are usually accompanied by a drop in the German yields, which indicates increased demand for the safe have German Bunds.
The Greek 10-year yield shot higher by 39.4 basis points to 11.08%, while the 2-year yield rose 76.2 basis points to 20.852%. German finance minister Schaeuble said on Tuesday that Greek liquidity appears to be getting tighter. He added that Greek talks with its creditors have been more constructive recently, but maintained that major part of the adjustment has to come from Greece in order for the deal to be reached.
Meanwhile, the German 10-year yield declined for the first time after three consecutive sessions of gains. The 10-year yield fell to a low of 0.406%, before recovering to trade at 0.442%. Rising Greek yields are usually accompanied by a drop in the German yields, which indicates increased demand for the safe have German Bunds.