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Irish debt yield spread narrows, CDS falls
Mon, 5th Oct 2009 11:03
LONDON, Oct 5 (Reuters) - The Irish 10-year government bond yield spread over euro zone benchmark German Bunds tightened by 6 basis points on Monday, while the cost of protecting Irish debt against default dropped.
Meanwhile, the 10-year Greek government bond yield spread over Bunds also narrowed by 6 basis points.
These moves followed Irish voters endorsement of the European Union's Lisbon Treaty and a widely-expected change of government following Greek elections at the weekend.
Five-year credit default swaps (CDS) on Irish government debt contracted to 130.5 basis points from 138.5 bps on Friday, according to credit monitor from CMA DataVision.
It means the cost falls to 130,500 euros to protect 10 million euros-worth of Irish government bonds.
The 10-year Irish/Bund spread was last seen at 159 bps, retaining their position as the euro zone's highest-yielding sovereign debt, according to Reuters data.
The equivalent Greek spread
was last seen at 129 bps, the third highest-yielding after Slovak bonds.
The Irish and Greek yield spreads led other intra euro zone spreads to narrow.
(Reporting by George Matlock) Keywords: MARKETS BONDS SPREADS
(george.matlock@reuters.com; Reuters Messaging: george.matlock.reuters.com@reuters.net; +44 20 7542 2508)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Meanwhile, the 10-year Greek government bond yield spread over Bunds also narrowed by 6 basis points.
These moves followed Irish voters endorsement of the European Union's Lisbon Treaty and a widely-expected change of government following Greek elections at the weekend.
Five-year credit default swaps (CDS) on Irish government debt contracted to 130.5 basis points from 138.5 bps on Friday, according to credit monitor from CMA DataVision.
It means the cost falls to 130,500 euros to protect 10 million euros-worth of Irish government bonds.
The 10-year Irish/Bund spread was last seen at 159 bps, retaining their position as the euro zone's highest-yielding sovereign debt, according to Reuters data.
The equivalent Greek spread
The Irish and Greek yield spreads led other intra euro zone spreads to narrow.
(Reporting by George Matlock) Keywords: MARKETS BONDS SPREADS
(george.matlock@reuters.com; Reuters Messaging: george.matlock.reuters.com@reuters.net; +44 20 7542 2508)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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