Morning papers: Eurozone bonds hit by mass sell off

Eurozone bond markets suffered a mass sell-off yesterday (November 15) as investor fears spread beyond Italy and Spain to AAA-rated France, Austria, Finland and the Netherlands, reports the Financial Times.

The premium that France and Austria pay over Germany to borrow rose to euro-era records of 192 basis points and 184 basis points respectively, levels investors say are no longer consistent with top credit ratings.

Youth unemployment to surge past 1m as jobs crisis unfolds

Business leaders are meeting David Cameron today to urge him to introduce tax incentives for firms hiring young people - or risk the country’s youth unemployment problem spiralling even further out of control, reports The Daily Telegraph.

Grim unemployment figures this morning are expected to reveal more than 1m young people are now out of work. The psychologically damaging youth unemployment rate - at more than one in five of all under-25s - is likely to prove a further embarrassment for the government which has been accused by Labour of axeing crucial jobs schemes for the young, such as the Future Jobs Fund.

Eurozone crisis: countries may be ‘pushed out’ of single currency

The prospect of a eurozone breakup intensified on Tuesday night as borrowing costs around the region soared and the Dutch prime minister said it should be possible to expel some members from the currency union, reports The Guardian.

Investors are rapidly losing hope that a solution to the sovereign debt crisis will be found, and their fear was demonstrated by rising bond yields – the rate of interest governments have to pay to borrow – across almost all single-currency countries. The Dutch premier, Mark Rutte, stoked fears that a collapse could become a reality as he aired the prospect of countries being ejected, albeit as a last resort.

Geithner seeks a US boost

Treasury Secretary Timothy Geithner said Europe’s smoldering fiscal crisis should compel Congress to pass legislation that boosts the economy, warning that continued global pressures are constraining US growth, reports The Wall Street Journal.

Mr. Geithner also said there were “lots of ways” the European Central Bank could “play a more effective, supportive role” in resolving the European crisis, though he didn’t specify what the ECB might do.

Borrowing costs in Britain tumble amid mayhem on world bond markets

Borrowing costs in Britain yesterday tumbled to levels hardly seen since the 19th century – even as they shot up across much of crisis-torn Europe, reports the Daily Mail.

The yield on 10-year gilts – the benchmark interest rate paid by the UK government to borrow – fell to 2.13 per cent. Analysts said that was at or close to the lowest level since 1898 and provided ammunition for those claiming Britain is now a ‘safe haven’ for investors looking to avoid high-risk debt in the eurozone.