Sept 12, 2011
Fears of a Greek default and credit contagion ripped through markets Monday, tumbling European shares to their lowest in more than two years and the euro to a seven-month low against the U.S. dollar.
Concerns that Moody’s Investors Service could downgrade the credit-worthiness of French banks and the lack of a solution to Greece’s debt problem undermined investor confidence and the appetite for risk.
Safe-haven buying briefly pushed yields on benchmark U.S. Treasury 10-year notes to lows last seen at least six decades ago and 10-year Bund yields fell to 1.73 percent.
The euro later rebounded from its low to trade up almost 0.8 percent at $1.3673 to the dollar.