Greek 10-year bond breaks 4% threshold

Investors fear new government crisis in Italy

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.