Collapse of Greek, Irish, Portuguese bonds on Paris by default; Rise of bunds

April 22, 2011, 2: 40 pm EDT by Emma Charlton and Keith Jenkins

April 22 (Bloomberg) - Greek bonds collapsed, pushing yields by more than a year, as the cost to ensure against default credential is passed to a record level in the middle of a concern, it will have to restructure its growing debt burden.

Yields on bonds of two years and 10 years of the Greece, the Ireland and all pink Portugal records euro-ère this week. April 20, Lars Feld, a member of the Council of the German Chancellor Angela Merkel of economic advisers, said that the Greek debt restructuring is likely. German bunds acquired after put Standard & Poor a "negative" outlook on the credit rating AAA of U.S., triggering demand for an alternative to the treasuries. "" The key behind this new sell-off factor is speculation in possible Greek restructuring, ", said Michael Leister, an analyst with fixed income to WestLB AG in Düsseldorf, Germany. "Test negative for the sovereign U.S. added pressure rating, reminding investors once more that the sovereign debt issue is serious and here to stay for the foreseeable future."Two years Greece gives roses 450 basis to a record euro-ère points 23.32% effective from 4 h 23 yesterday in London, the largest increase since the week ending May 7. Performance of the obligations of 10 years of the nation has posted a gain of 110 basis 14.93% points. 10 Portuguese Government bond yields years rose to a record euro-ère of 9.43%. The yield on the note of two years of the nation rose 165 basis points record 10.85%. Note of two years of the Ireland pink yields 254 points of base in the week, reaching a record level of 10.77%, while its obligation of 10 years has reached a record % 10.48. credit-default SwapsEarlier this month, Portugal became the third country Euroregion to seek an international bailout after the Greece triggered a crisis of debt sovereign that threatened to fragment the block of the currency, a year and then engulf Ireland.The fresh Greek sovereign debt insurance jumped to a record 1.325 basis points according to the CMA Award for credit default swapsa chance to 67.4% of the default of signaling within five years, then even that Greek officials said they have no plans for a restructuring of the debt. Portuguese default swaps rose to 646, also a record. "Yields continue to expand in double-figures, whereas some risks feeling returns to the market,"said Leister. "Which suggests that despite the level reached so far is not prevent a further widening."Lifted of bunds RiseGerman 10 years has increased during the week, pushing the yield down 10 basis points to 3.27%. The country is ready to sell April 27 auction of 6 billion euros of debt of 10 years, while the Italy intends to sell related index of bonds maturing in 2016 and 2021.European government bond markets are closed on 22 April and 25 for the holidays. Trade will resume April 26 in Germany consumer prices are forecast to 2.4% increase of 2.3% in March, according to the median estimate of 12 economists surveyed by Bloomberg News on 27 April before the report.German Treasury bills handed investors a loss of 2.1% this year through yesterday, according to index compiled by the European Federation of financial analysts associations Bloomberg. The Greece has decreased by 8.7%, 12.3 per cent of the Portugal and 5 percent for the Ireland.

-Editors: Matthew Brown, Peter Branton

To contact the reporters on this story: Emma Charlton London, echarlton1@bloomberg.net. Keith Jenkins at the kjenkins3@bloomberg.net London

To contact the editor responsible for this story: Daniel Cuddies to dtilles@bloomberg.net

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