Friday, 21 June 2013

Greek bonds

Greek bonds and stocks have been hammered the last few trading sessions and are now considerably off the highs in mid May. The Benchmark 10 year is trading over 300 bps higher with price falling over 20%!

On top of this the ATG (Greek stocks) have fallen over 28% from their highs representing another bear market in Greek stocks. Today's session saw a further 6% capitulation as bond yields rose 70bps

Overall with the recent politcal strain in Greece with their coaltion in tatters we could see further downside in both bonds and stocks and then we could see a potential rise in the Greek-German spread back towards 1,000 bps.

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