Markets hit by yield hikes on Spanish and Italian national debt

SIGNIFICANT yield increases on Spanish and Italian government debt hit international markets, yesterday, as investor concern over the eurozone debt crisis rose again.

The yield, or interest rate demanded by investors, on Italian five-year bonds went up from 5.32% to 6.29%; while the rate on 10-year Italian bonds (which had risen to a record high of 7.5%, last week, before retreating) was back up from 6.3% to 6.75%.

However, the rise in the yield on Spanish bonds (the 10-year rate passing the 6.10% mark) was a major concern, ahead of a further sale of long-term bonds later this week.