Greece's government debt is back in the spotlight, and investorsare looking for the exit.

As the four-day rout in Greek bonds sent yields to the highestsince January, the selloff started to infect nations from Irelandto Portugal and even larger countries such as France. In Spain, adebt auction fell short of the government's maximum target, andEuropean stocks extended their longest losing streak since 2003.Only German bunds were sheltered from the slump, with demand forthe safest assets pushing their yields to a record low.

“We are in a typical flight-to-quality environment with substantial losses in stockmarkets and wider spreads,” said Patrick Jacq, a fixed-incomestrategist at BNP Paribas SA in Paris. “The Spanish auctionsuffered from the environment, not from domestic reasons. It's themarket environment which is not favorable.”