One question was on the lips of investors on Thursday after the virtual break-down of the Italian bond markets: will France be next to tumble into the eurozone’s contagion vortex?
What would have been an unthinkable question only a few months ago has left investors agonising over whether they should ditch not just their Italian and Spanish bonds, but French debt too.
Some of the biggest funds in the world now argue there is only one eurozone government bond market left worth buying – and that is German Bunds.
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