Italy has been forced to pay record interest rates in a 10bn euro ($13bn; £9bn) auction of treasury bills.
The search for income has become increasingly difficult in a world of slashed dividends and low interest rates. However, Gary Potter, co-manager of the Thames River multi-manager range, has been looking for alternative sources of income less correlated...
So suddenly no-one wants to lend to Germany for the next ten years - hardly surprising because by lending to Germany investors are effectively lending money to Greece, Portugal and even Italy.
Last week Italian ten-year bond yields surged to above 7%, but managers are urging investors to be cautious
Positive economic data from Japan, US and China boosts fund manager's confidence in the global economy
Fidelity Worldwide Investments has launched an Emerging Markets Inflation Linked Bond fund for Andrew Weir.
T. Rowe Price has added a European High Yield Bond strategy to its fixed income range, managed by Mike Della Vedova.
The euro weakened this morning as the cost of insuring French bonds climbed to a record, Spanish yields rose and european equities retreated for a second day.