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Bond rise hits stocks

GLOBAL stocks have slumped as a surge in Spanish and Italian bond yields fuelled concern that Europe's debt crisis is worsening.

The Spanish government announced €10bn of fresh austerity measures but bond yields climbed to 6pc for the first time in a year and Italian yields surged 23 basis points to 5.66pc.

Irish bond yields remained steady at 6.65pc, surprising traders who expected big moves on all European bond yields.