LONDON, Sept 12 Southern European government
bond yields rose sharply on Monday as concerns about the
effectiveness of central bank policy around the world injected
global markets with a fresh dose of volatility.
Portugal's 10-year yield rose to a two-month high of 3.247
percent, up more than 6 basis points on day.
Spain's 10-year bond yield rose to 1.14 percent, its highest
level since late July and Italian 10-year bond
yields hit their highest level in over two months at 1.33
Nervousness about the possibility of a U.S. interest rate
hike this month, news that the Bank of Japan is studying ways to
steepen the bond yield curve and disappointment at the lack of
action at last week's European Central Bank meeting triggered a
shake-out in world bond markets on Friday.
The yield on safe-haven German Bunds continued its rise
further into positive territory. Ten-year Bund yields were up 2
bps ay 0.03 percent, having risen more than 6 bps on Friday
(Reporting by Dhara Ranasinghe; Editing by Jamie McGeever)