Italy, where bond yields soared to euro-era record levels, saw its stock market lose 25%.

WSJ: World's Woes Leave Lasting Scars

Italians have long been enthusiastic buyers of government paper, particularly in the 1980s, when yields soared to nearly 20%.

WSJ: Ordinary Italians Confront Crisis by Buying Debt

Dutch bond yields soared after the country's prime minister resigned amid the collapse of talks aimed at trimming Holland's budget deficit.

WSJ: Europe Woe Stirs