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France is auctioning off €4.5 billion of debt - its ten-year securities yielded 112 base points more than comparable German debt, Bloomberg reports.
Spain is also selling, with €3.75 billion to go as the extra yield on its ten-year bonds rose to 396 basis points.
Elisabeth Afseth, a fixed-income analyst with Evolution Securities in London, said the situation in Spain was "not going to be pleasant".
"If there are problems getting the full amount away or if yields are pressed to substantially higher levels, it will be bad news and will further intensify the crisis," she told the news provider.
This bad news comes despite a momentary boost in the European market yesterday, which analysts suggested was caused by the Chinese central bank's cut in reserve requirements.
Posted by Greg Secker
