While analysts have been making a big deal about the bank bailout in Spain this morning, it is important not to forget about Europe’s next-biggest problem: Italy.
Yields on Italian government bonds are shooting through the roof today, as investors wonder how much stronger Italy’s banks are than Spain’s. In neither case, it would appear, to they believe that the bailout has divorced financial sector stress from that on the government.
The Italian FTSE MIB is also down 1.1 per cent.
Check out Italian 10-year yields, up 20 bps so far today:
And here’s a look at the FTSE MIB:
Photo: Yahoo Finance