Spread between Italy and Germany 10-year bond yields widen to most in 5 years
The losses sustained by Italian bonds is only exacerbating the risk off sentiment seen in markets today. The rout here is affecting Italian bank stocks and as a whole it is dragging down almost all sectors across regional equities on the day. Italy's FTSE MIB is leading losses in European equities, down by 1.2% currently.
And Italy's budget worries is also dragging down the single currency as the euro is now tied for the worst performing major currency with the aussie on the day. EUR/USD briefly touched a low of 1.1525 and that's the lowest level the pair has traded since 21 August.
