Government bonds

Spain became the new Italy this morning after the yield on bonds it sold at auction reached a 14-year-high of just under 7%.

Italy sold €3bn of five-year bonds, the maximum target, at the highest yield in more than 14 years as Mario Monti seeks to form a new government.

Fidelity manager discusses the growing risk of another UK recession, the European debt crisis, and prospects for global government bonds.

Fears of France and Spain being the next to suffer in the eurozone debt crisis intensified as 10-year bond spreads reached euro-era highs above German yields yesterday.

Silvio Berlusconi's pledge to resign has failed to calm investor nervousness on Italian sovereign debt, with yields on 10-year bonds rising above the crucial 7% mark this morning.

Italian prime minister Silvio Berlusconi faces renewed calls to resign after he failed to secure a parliamentary majority in a budget vote among MPs.

Royal London AM has launched an International Government Bond fund for George Henderson.

Long-dated US treasuries have returned more than the S&P 500 over a 30 year period for the first time since the 19th century.

Prime Minister David Cameron has warned that bankers caught manipulating the market to take advantage of QE can expect to face criminal prosecution.

Leading banks are at odds with European policymakers after lenders offered to take a haircut of 40% on their Greek bonds, but leaders said the proposals do not go far enough.