Europe's Debt Hangover: The Bond Selloff That Won't Quit The bond market is sending a clear message to European governments: they must take seriously the precarious balance sheet that underlies their fiscal policies.
This week's selloff in government bonds has pushed yields to multi year highs, with Germany and France seeing their 10 year borrowing costs spike to levels not seen since the financial crisis.
The cause of this upheaval is a global economy still reeling from the oil price surge triggered by the Iran conflict, coupled with stubbornly high inflation rates that show little sign of abating.