Greek and Italian bond yields break records

Greek 10-year government bond yields have reached a new record high of 28.45%.

The first Italian bond auction to be held under prime minister Mario Monti also broke records this morning, as Italy was forced to offer yields of 6.29% on five-year papers.

Investors are likely to remain wary of the prospects for both countries despite hopes that a change of leadership in both nations would bring some much needed stability to the sovereign debt crisis.

Greece’s vice-minister of finance, Ioannis Mourmouras, marked the appointment of a new Greek government on Friday with a warning on Greece’s financial situation and the potential ramifications.

“As you know, Greece is at a crossroads. What is at stake is the future of the country within the eurozone” he said.

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