Italy BTPs getting wrecked
When the bond market is unhappy, it certainly lets you know.
Italian 10-year yields have been soaring since the latest episode of political drama. They are now threatening the 2015 high of 2.71% after a 23 basis point rise today to 2.69%. Since the first week of the month, it has been a straight-line 100 basis point move higher.
And we have to wonder how much higher yields would be if the ECB wasn't buying.
But as bad as this is, it's still a long way from the 7-8% yields in 2011 at the peak of the eurozone crisis.
