Greek government 10-year debt is trading with a yield around 14pc, surpassing the peaks seen during the country's ?110bn bail-out last year. The nation's weak economy, hobbled by a severe austerity programme, means it is seen as an impossibility that Greece will manage strong enough growth to support a debt equivalent to 144pc of output.
Gold futures for June - contracts arranging to sell at a promised price - hit a record $1,500 an ounce as investors looked for a safe haven from Europe's debt crisis, as well as the problems in the US which saw its credit outlook downgraded by credit rating agency Standard & Poor's. Nonetheless, the euro held steady as data for the wider eurozone showed growth - and prices - had picked up.
April's purchasing managers' index (PMI), a survey tracking private sector activity across the region, ticked up to 57.8 from March's 57.6, where anything over the 50-level signals activity rose.
Prices climbed at a near-record rate, raising expectations the European Central Bank will tighten monetary policy further. The bank raised interest rates earlier this month for the first time since mid-2008, despite concerns over the effect it could have on struggling countries.
The euro climbed to 87.72p against the pound, up from 87.69p.
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