Global markets back in decline

DISAGREEMENT between Germany and France over the use of the European Central Bank (ECB) as a rescue lender to shore up the eurozone debt crisis; and a continuing rise in borrowing costs, sent international markets back into decline, yesterday.

While all national bond yields have gone up against the German yield — the regional benchmark — those of Spain and France were particularly high yesterday.

Although the interest rate on 10-year Spanish bonds nudged the 6.75% mark at one point, the country’s finance minister, Elena Salgado said Spain is at no risk of having to receive a bailout.