Sovereign bond volumes slump

Trading volumes in Eurozone government bonds issued by troubled states Portugal, Ireland and Greece have slumped to new lows as fears of default spook investors. The volume traded in Greek, Irish and Portuguese bonds was down to just €1.1bn in May – its lowest level since records began in 2001, said Tradeweb. Even pension funds have been put off by the unprecedented levels of uncertainty. Yields on Portuguese 10-year bonds hit new highs on Friday.