FT.COM: The euro and the Spanish and Italian bond markets came under pressure on Monday amid growing investor fears that the problems of Greece are hitting the bigger economies of Europe’s single currency.
The euro fell to record lows against the Swiss franc and two-month lows against the dollar, while Spain’s cost of borrowing for 10-year debt rose to highs last seen in September 2000. Italian 10-year bond yields also jumped…
John Wraith, fixed income strategist at BofA Merrill Lynch, said contagion was spreading to the bigger eurozone economies. “It is like a group of climbers roped together. As Greece slips, it pulls down other countries such as Spain and Italy.”… (more)
EDITOR: We do not understand how a single currency can be maintained for so divergent a number of economies.
