Investors Flee Southern Europe's Bonds After German Threat

Investors are running away from bond markets in southern Europe after Germany warned there will be no bailouts for struggling debtors.

Greece, which sports a budget deficit equal to 12.7 percent of its GDP, was particularly hard hit, with its 10-year government bond yields soaring more than 40 basis points to 7.15 percent.

That sent the premium of Greek bond yields over German bond yields to the highest level since Greece joined the euro in 2002, according to the London Telegraph.

Markets in Portugal, Spain, Italy and Ireland also suffered big-time. (more)