Italian bond yields reach record high

LONDON - Italian benchmark yields climbed to a euro-era record amid concern the region's third-largest economy is struggling to manage its debt loads, while growth in the region is faltering.

German two-year note yields were within six basis points of an all-time low before European finance chiefs met to discuss the region's bailout fund. Greek politicians agreed to form a national unity government to win international aid payments.

The extra yield investors receive for holding 10-year Italian debt over similar-maturity bunds fell from a euro-era record after Il Foglio said Prime Minister Silvio Berlusconi may step down within "hours".