Greeks Bond 9%

The year bond yields have exceeded Greece
9% barrier for the first time since 2001, the year of entry
Greece into the euro. Pressure indicates that the concerns of the market
effectiveness of EU aid plan of 45 billion IMF-which the
Government has requested the activation of Athens last Friday. The Minister
German Foreign Guido Westerwelle, reiterated the opposition
the German aid plan in the absence of a credible program
deficit reduction by Athens.
By midmorning the
year bond yields have indeed risen to 9.116%
8, 680% to Friday night, surpassing the previous peak of 8.950%
reached its Friday morning, before the activation request
of the aid plan. The spread with the same title ten-year German was
then expanded to 607 basis points from 561 basis points, maximum
gap since 1997. In the short-term bond yields biennial
Greeks are sketched to record 12%. On the currency front, the euro
returned to fade and keep the fatigue threshold of 1.33 euros after a
minimum of $ 1.3299 in midmorning. Even spokesman
Ministry of Finance said the plan will be submitted
Rescue Greek Parliament to vote only when Athens
tend known details of the reduction of budget deficits.
Already last Friday the Registrar
Merkel reiterated that the aid to Greece was
be activated "only in case of threat to the stability of the euro and
only after the presentation "of a credible economic plan" by
Athens.

The trend in rates affects the spread of Greek government bonds
compared to the German Bund: At the same time also spreads widen
public bond: that of ten German turns around 663 pb
after peaking in February 1998 (680). The situation
market also affects the title with a ten Portuguese
differential of 214 basis points from the Bund.

New records for insurance against default risk: the
CDS on five-year Greek is 702.8 basis points, after
touched a peak of 713 basis points (642.58 Friday). The CDS Portuguese
of 318 basis points (305.5 last Friday).

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