The massive sell-off of European bonds in the South continued, with the Greek 10-year bonds “breaking the barrier” of 4%, as it now moves to 4.13%.
Similarly, the yield of the Greek 5-year bond rose to 3.26%.
The international sell-off was sparked by new trade concerns and the latest developments in Italy, as a new government crisis has broken out with the power struggle between Salvini and Berlusconi escalating. The 10-year bond in Italy was up by 2.7% and yields are now at 3.04%.
Investors are turning to the safety of the German bond, thus boosting the spreads especially with the bonds of the South, while the 10-year-old US is also a safe haven.
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