Alarm in European bond markets

The yield spread between France’s 10-year government bond and Germany’s 10-year bond has widened to 149.17 basis points, reaching its highest level since the Eurozone debt crisis in 2012.

Commerzbank described developments in the bond market as “concerning,” noting that the selling pressure is no longer limited to France. According to the bank, widening yield spreads are also spreading to other highly indebted European countries, including Italy, Belgium and Greece.