The eurozone crisis is back

Stock markets are crashing. Bond yields are soaring. And the cryptos are evaporating. There is so much going on in the financial markets right now it would be hard to miss the most significant event. The eurozone crisis, which almost broke apart the single currency back in 2011 and 2012, is back. And this time around, there is no very obvious way of fixing it.

With inflation soaring across the world, the era of plentiful printed money coming to an end and interest rates starting to rise, every kind of financial market is in turmoil. Investors are adjusting to a new set of circumstances, and doing so very quickly. So far, only a few traders who spend their days glued to Bloomberg terminals have paid very much attention. But, within the chaos, yields on peripheral sovereign debt, the trigger for the single currency’s meltdown a decade ago, are rising steeply again.