Spain and Italy’s economic crisis ignites investor selloff

31st May 2012

US borrowing costs dived to levels last seen in 1946 and those for Germany and the UK hit all-time lows as investors fretted at what they see as a lack of direction from policymakers to deal with the debt crisis in Spain and Italy.

In a remarkable sign of flight to save haven assets, yields on United States 10-year Treasury note fell to a record low of 1.64 per cent, less than its previous all-time low of 1.67 per cent last September. While German two-year bond yields fell to zero for the first time, meaning investors are willing to lend to Berlin for no return.

Leave a Reply

Your email address will not be published. Required fields are marked *