Europe has been in the spotlight throughout the last several months as the continent has fought an increasingly desperate battle to ward off a wave of sovereign debt defaults that could ultimately lead to the end of the euro. While much of the attention–particularly from international investors–has focused on tumbling stocks, bond markets across the euro zone have been also been feeling the pressure. The recent volatility has weighed heavily on bond markets as well, as uncertainty over the ability of some large European countries to make good on their financial obligations has pushed up borrowing costs dramatically [see Three Long/Short Ideas For Euro Zone Debt Drama]. While the countries facing the most immediate and severe cash crunches–members of the PIIGS bloc–have been impacted most directly, the more “stable” countries are also seeing their costs of borrowing rise. Italian bond auctions for three-year notes have recently sold at yields of [...] Click here to read the original article on ETFdb.com. Related Posts: International Bond ETFs: Cruising Through All The Options Six Noteworthy ETF Innovations Using ETFs To Build A Complete Bond Portfolio Market Vectors Planning Japanese Bond ETF Three International Bond ETFs For Europe’s Bounceback