Peripheral EMU spreads widen in risk adverse market

LONDON: Yield spreads between bonds issued by the euro zone's lower-rated sovereigns and benchmark German Bunds widened on Tuesday, with investors risk averse after reports of nuclear radiation leaks in Japan.

"Given what we've been seeing in Asia, equities being weaker and bond markets having a good bid, there's a certain element of directionality to the spread," one trader said.

The Greek/German 10-year yield spread was last at 940 basis points, 11 bps wider on the day. Other peripheral spreads versus Bunds were wider as well.