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Italian borrowing rates skyrocket in bond sale
AP ^ | 6/14/2012 | COLLEEN BARRY

Posted on 06/14/2012 4:05:32 AM PDT by EBH

"Italian auctions are now as nerve-wracking as Spanish ones," said sovereign debt expert Nicholas Spiro of Spiro Strategy, warning that both Spain and Italy could soon find it too expensive to raise money on financial markets if the European Central Bank does not take action to restore confidence.

Italy's overall debt is an enormous ¬1.9 trillion ($2.4 trillion), requiring frequent market access to repay investors whose bonds are expiring. To lower that debt, the economy needs to become more competitive.

Spain's decision over the weekend to seek a bailout for its banks has fundamentally changed the market perception of Italy as the next most likely eurozone country to seek a bailout. Italy, which has the eurozone's third-largest economy, is under extreme pressure to speed up its reforms and implement austerity measures, while pressing European partners to come up with mechanisms to steady market confidence.

(Excerpt) Read more at ...

TOPICS: Business/Economy; Front Page News; Germany; Government; News/Current Events; Russia; United Kingdom
KEYWORDS: drip; drop; europeanunion; germany; greece; ireland; italy; russia; spain; unitedkingdom
Spain borrowing costs soar after Moody's downgrade

"Liquidation is always looked at," said Antoine Colombani. "We prefer to liquidate when it's cheaper for the taxpayer."

1 posted on 06/14/2012 4:05:43 AM PDT by EBH
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They’re not getting’ the message....the world is looking for lira....

2 posted on 06/14/2012 4:09:05 AM PDT by mo (If you understand, no explanation is needed. If you don't understand, no explanation is possible.)
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To: mo

Actually it will be Chinese renminbi. The currency has been making head way the last few years into the markets, even here in America.

3 posted on 06/14/2012 4:10:58 AM PDT by EBH (Obama took away your American Dreams and replaced them with "Dreams from My (his) Father".)
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Italy paid 5.3 percent, up from 3.91 percent last month.

That is a really big rise, the tipping point I read is 7%, any more and the government will default on interest payments.

4 posted on 06/14/2012 4:57:48 AM PDT by 2001convSVT (Going Galt as fast as I can.)
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To: 2001convSVT

They’re going to pay a high price for all that cheap money used in the past... idiots.

5 posted on 06/14/2012 7:42:14 AM PDT by GOPJ (Take your little hammer, little sickle and your scary red signs with a fist on it, and go home...)
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