Bond markets reignite two-tier Europe fears

The difference in yields on 10-year government bonds issued by Ireland and Portugal on the one hand and Germany on the other have hit record highs of 4.5% and 4.3% respectively, reports the BBC. This plunge in the two nations' bond yields comes after gloomy data published last week showed Ireland's GDP shrank 1.2% in Q2 and Greece's GDP contracted 1.5% as fears over a second EU sovereign debt crisis re-ignited. The latest dive in Irish and Portuguese government bond yields will fuel concerns of growing polarisation between Europe's largest economies such as France and Germany and thos...