Global market sentiment drives sovereign yield spreads during euro crisis.
The article looks at what causes differences in bond interest rates between European countries and Germany. They studied a lot of factors that might affect these rates, like market feelings and risk. They found that during the euro area debt crisis, the reasons for higher rates in central countries were only partly due to their own economic situation. Also, the factors that influence these rates, especially global market feelings, became more important during the crisis, especially for peripheral countries.