Skip to comments.Italian borrowing rates skyrocket in bond sale
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 rr.com ...
"Liquidation is always looked at," said Antoine Colombani. "We prefer to liquidate when it's cheaper for the taxpayer."
They’re not getting’ the message....the world is looking for lira....
Actually it will be Chinese renminbi. The currency has been making head way the last few years into the markets, even here in America.
That is a really big rise, the tipping point I read is 7%, any more and the government will default on interest payments.
They’re going to pay a high price for all that cheap money used in the past... idiots.