WAKE UP: Italy Is Having A Meltdown After The Berlusconi News, As Stocks Tank And Yields Surge

We noted earlier how Italian stocks were higher in the wake of the Berlusconi resignation, but that’s over. Stocks are now tanking.

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.

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