FinanceEurope's Sovereign Debt Markets Flash Warning Signs
Concerns are rising over European sovereign debt markets as key bond yields hit multi-year highs. Italy's 10-year yield reached 4.02%, France's 4.08% (highest since 2009), and Germany's 3.23% (a 15-year peak). The UK's 10-year yield is also back above 5%. Unlike previous instances, the European Central Bank (ECB) is now contributing to the yield increase through rate hikes, with a 90% probability of another hike on September 10th, despite a sluggish economic growth environment.