Italian Debt Costs Above 7% — Again
Yields on Italy’s 10-year bonds rose to 7.11% this morning. The 7% level is a key dividing point — interest rates at or above that level are virtually unsustainable for governments. Spain’s 10-year yields also rose to 5.63% in another…
Yields on Italy’s 10-year bonds rose to 7.11% this morning. The 7% level is a key dividing point — interest rates at or above that level are virtually unsustainable for governments.
Spain’s 10-year yields also rose to 5.63% in another sign that worries over Europe’s debt are rising again.
One good sign is that the Eurozone’s European Financial Stability Facility (EFSF) sold €3 billion in 3-year notes yesterday at a 149-basis point premium to German bunds. The EFSF notes attracted mostly European buyers, but Asian and British buyers were also taking part.
The message from the European bond market is mixed, at best, but at least that offers some encouragement.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
