Borrowing costs rising for Italy and Spain as bond yields soar.

Amid fears that euro area finance ministers meeting in Brussels will be unable to agree to measures that would calm fears about the debt crisis bond yields increased both in Italy and Spain. Spanish ten year bonds were yielding more than 7 per cent making borrowing costs prohibitive for the country. Italy too saw its bond prices drop bringing the ten year yield to the highest level in a weak. In contrast German two year notes were yielding less than zero at .0344 per cent! Even France was able to auction similar debt at a negative rate. An analyst at Lloyds Banking Group said: “The market doesn’t have great expectations of the summit,” Spanish 10 year bond rates are approaching a record. Italian 10 year bonds yielded 6.11 per cent. For more see this Bloomberg article.