13.01.2012

By Simon Miller

Bond yields in France, Italy, Spain, Belgium and Austria ticked up as rumours of an impending Standard & Poor's downgrade of these countries hit the markets.

French yields were up 7 basis points to 3.11% while Spanish 10-year yields increased 11 basis points and Belgian rates grew by 15 basis points.

Meanwhile, investors looking for safe havens saw Dutch 10-year bonds down to a record-low 2.073% while UK 10-year hit 1.952%, almost hitting its all-time low of 1.93%.

S&P is expected to announce the downgrades at 20.00 GMT with France expected to be downgraded by one notch with the rest of the eurozone also downgraded according to sources excepting Netherlands and Germany which would remain AAA.