English: Headquearters of Bankia in Valencia
(Photo credit: Wikipedia)
By David Goodman and Keith Jenkins – The 10-year borrowing costs of Austria, Belgium, Finland, France, Germany and the Netherlands dropped to records as euro- area unemployment rose to a record and Italy missed its target at a sale of bonds, driving investors to the region’s safer government securities. Spanish bonds dropped for a fourth week, pushing the 10-year yield above 6.5 percent after nationalized lender Bankia group said it will seek 19 billion euros ($23.5 billion) of state support.
“We’ve seen German two-year yields turn negative in a classic flight to safety,” said Peter Chatwell, a fixed-income strategist at Credit Agricole Corporate & Investment Bank in London. more> http://tinyurl.com/7we254e
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