Why Europe can't solve its debt crisis

Italy's borrowing costs soared as the euro zone's third largest economy was forced to pay euro-era record high yields to lure buyers for its latest bond auction.

Italy's borrowing costs soared as the euro zone's third largest economy was forced to pay euro-era record high yields to lure buyers for its latest bond auction.

Government borrowing costs – as measured by 10-year sovereign bond yields – are hitting record lows across the euro zone "core" today. In France, 10-year yields have fallen to 1.75 percent. The Belgian 10-year is at 1.95 percent, the Dutch 10-year is at 1.62 percent, and the Austrian 10-year is at 1.49 percent.

In the wake of Papandreou's Call for Voter Referendum on EU Debt Deal sovereign debt yields plunged in Germany and surged higher in most other European countries, but most notably Italy and France.

Mark O'Byrne submits: Gold is tentatively higher this morning with the British pound, yen, Swiss franc and dollar showing weakness. Greek German 10 year bond yields have surged to euro era record highs and the Greek 10 year bond has surged to a new record high of 17.146%. The euro has remained remarkably stable, so far, but euro gold at €1,052/oz remains near (3.4%) record highs of €1,088/oz.

FRANKFURT — A dramatic anti-austerity vote leaves Italy lying outside the fortress the European Central Bank constructed around the eurozone last year and vulnerable to a market attack. This week’s election leaves slim prospects for a durable, reform-minded government in Rome and exposes a flaw in the bond-buying defence plan the ECB put together last September — a weakness that could see the eurozone crisis roar back to life.