'Most worrying day of crisis so far' as bond yields spike

M&G bond fund manager Mike Riddell has warned the crisis in Europe has taken a turn for the worse after bond yields in core European countries rocketed yesterday.

Riddell, manager of the group's International Sovereign Bond fund, said Tuesday's spike in the yields of French, Austrian and Finnish debt marked "probably the most worrying day of this crisis so far." Yields on French 30-year debt soared to 4.43% - the highest level for more than three years - while yields on other core nations also spiked. Meanwhile nations which have already felt the glare of the spotlight - notably Italy and Spain - also saw yields climb sharply, with Italian yields going back above 7%. Riddell said Tuesday was clearly a ‘risk off' day, but he was concerned abo...