After Cyprus, bond markets see Slovenia closer to bailout

LONDON (Reuters) - Cyprus may be a "special case" in the eyes of European officials, but their handling of its bailout is taking a toll on another small euro zone member with an over-burdened banking sector - Slovenia.

Yields on its two-year bonds surged to nearly 7 percent on Thursday, overtaking those on longer-dated paper and inverting the yield curve - a sign investors are pricing in a high risk of default.