Italy’s Borrowing Costs Jump
June 13, 2012 by Douglas A. McIntyre
Italy has been sucked further into the sovereign debt crisis because international capital markets investors believe it is the next Spain–unable to sustain its debt and reign in its deficit. Evidence of investor caution showed up today with a vengeance.
Borrowing costs reached a six-month high of 3.972% for one-year notes. Most experts believe that rate cannot be sustained by the country as its credit needs increase. The market will watch the yield on ten-year notes closely now to see if they move well above 6% which was one signal of Spain’s inability to survive without a bailout
Douglas A. McIntyre
douglasamcintyre@247wallst.com
