Spreads on 10-year bonds between Germany, Italy hit 14-year high
(NEWSER) - With the US debt ceiling crisis finally sort of resolved, the markets are turning their attentions to Europe, and they don't like what they see, reports Reuters . Italy is being hit especially hard, with the yield gap between Italian and relatively stable German 10-year bonds reaching 3.7 percentage points , the highest in 14 years. Spain's 10-year bond yields are 3.8 percentage points higher than Germany's, and the Wall Street Journal notes that if the higher rates of Italy and Spain persist, they could cause "serious disruption." More»