Switch to Desktop Site
 
 

European markets tumble as investors fear Italian default

Next Previous

Page 2 of 4

About these ads

Yields on Italian bonds leaped from 5.2 percent yesterday morning to near 6 percent today -- drawing comparison to a similar spike last November in Ireland, a substantially smaller market. Safer German 10-year bonds -- the eurozone benchmark -- are yielding under 3 percent. The 300 basis-point difference, or spread, between the two reflects investor fears over the greater likelihood of an Italian default.

Germany's Chancellor Angela Merkel phoned Italy's Prime Minister Silvio Berlusconi on Sunday to urge passage of the austerity plan, something he's resisted until now.

The EU meeting on Italy yesterday took place with little advance warning. European officials declined to call it a “crisis” meeting, though it was set in the wake of sharp stock falls in Italy Friday. The EU officials had gathered to discuss a second Greek bailout following a $150 billion package promised last year.

Next Previous

Page 2 of 4


Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.

Share

Loading...