Spread the news: The impact of news on the European sovereign bond markets during the crisis

► We use the Eurointelligence newsflash to construct news variables. ► More news raises interest spreads of GIIPS countries since September 2009. ► There is both a domestic and a foreign effect. ► The size of the cross-border effect is related to cross-border bank holdings. ► The upward pressure on interest spreads is driven by bad news.