Market Punishes Italy

Italian Yields Jump After Poor Auction

FRANKFURT—Italian two-year and five-year government-bond yields soared to euro-era highs Friday as investors began giving up on the euro zone's ability to break the political gridlock that is blocking a more decisive response to the currency bloc's debt crisis.

Ireland, Portugal Woes Pose Risks

BRUSSELS—The euro zone's focus is on turmoil in Italy, politics in Germany and the multifaceted mess that is Greece. But Ireland and Portugal, the overshadowed bailout recipients, are still far from success—and any failure could roil the euro zone yet more. 
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