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
- And This Week a Turn for the Worse (safehaven.com)
- Eurozone crisis live: Fears grow over Spain as banking crisis deepens (guardian.co.uk)
- Today in Europe (economist.com)
- Investors flee Spain as banking fears deepen, Greeks warned of catastrophe (business.financialpost.com)
- ‘Significant’ risk of eurozone breakup: Rehn (business.financialpost.com)
- Funding crunch hits as markets shut out issuers, Shankar Ramakrishnan, IFR/Reuters