Yields on French 10-year government bonds just exploded, now up over 6% on the day to 3.14%.
The spread between French 10-year bonds and German bunds is up even more dramatically — more than 10 bps or a full 9% on the day. That’s a euro-era wide, according to Dow Jones.
A string of negative headlines out of Europe could have caused this — including the postponement of an EFSF bond sale earlier — in addition to overall dismay at the escalating crisis.
Check out that bonds-to-bunds spread: