This is the story that matters.
All of Europe and possibly the world watches in horror as Italy seemingly goes the way of Greece, despite being so large that it will take everyone else down with them.
Its yields have been surging for weeks, and it’s getting worse again today.
Italian 10-year yields are shooting through the roof.
Nobody thinks the EFS is large enough, seriously, to handle Italy. All eyes turn to the ECB.
For more on Italy, see Goldman’s latest note.