Greek yield spread widens after ratings cut

LONDON: The premium investors demand to hold Greek government bonds rather than benchmark German Bunds rose on Tuesday after the country became the lowest-rated in the world according to rating agency Standard and Poor's.

Following the cut to a CCC, Greece now has a lower credit rating than countries such as Pakistan and Ecuador.

The Greek/German 10-year government bond yield spread rose to 1,428 basis points versus 1,413 bps at Monday's settlement close.

Yields were also slightly higher across the euro zone's other peripheral countries.

Copyright Reuters, 2011