German Bund yields hit record low as Spain fears grow

From reuters.com

German 10-year Bund yields hit a fresh record low on Monday on persistent concerns that Spain's failure to convince investors it can keep its budget deficit in check could cause a new round of financial stress in the euro zone. The latest blow to Spanish markets was triggered by data on Friday that showed record borrowing by its banks from the European Central Bank. It is likely that most of the funds have been parked in domestic government debt, making them more vulnerable to sovereign stress. "The risk aversion is set to continue and it should mean that Bund futures test the all-time high ... (full story)