Bailout chaos has Greek bond spreads widening out once again.
From yesterday at these time we’ve widened a further 15 bp to 325 bp.
Two weeks ago, spreads contracted to 2.88 bp after Greece announced its austerity program, which the market assumed would be followed by a support package. No package, no peace for Greece, as spreads rebound, driving up government borrowing costs.
The wider spreads move, the weaker the euro gets…
