What people are really watching though is the bond market and… yields are widening to new euro-area records again.
Now, some of it may have to do with a margin hike at LCH.clearnet on Italian debt this morning, but the bottom line is this: Investors seem no more confident in Italian solvency today than they did yesterday.
UPDATE: And the Italian 10-year yield has hit 7.24% 7.34%. This is blowing up.
UPDATE: And look at the spread between German and Italian yields. Shooting straight higher.
Update 4:26 AM: And the Italian-German spread has gotten even worse.
Update 4:58 AM: This story is so big that “Italian 10” is now trending on Twitter.