Euro falls on sovereign debt fears

In mid-morning trading, the single currency dropped 0.7% to $1.426 on the back of renewed sovereign debt fears and speculation Italy could be next to fall under the contagion microscope. Italian bonds fell for a fifth straight day today, reported Bloomberg, pushing yields to a nine-year high. Spanish, Irish and Greek bonds also fell. In early London trading the yield on 10-year Italian bonds increased 10 basis points to 5.27%. Additionally, the price differential of Italian and German bond futures hit a record high. Meanwhile, figures showing Italian industrial output unexpectedly ...