Country risk skyrocketing for Italy. Serious situation on the front of the CDS guaranteeing our debt, which for the first time in history exceeded 500 basis points, reaching 505. As for the two Italian bond auctions that took place this morning, the interest rates arrived at the highest since 2008, when the crisis was still in the midst of Cyclone Lehman.
The increase was particularly worrying as regards one-year Treasury bonds (maturing on 14 September 2012), which recorded an increase of 1,194%, reaching 4,152%. The three-month Bots were instead placed with a yield of 1,92%. Good demand, which was over 7,4 billion for three-month bonds and 11,5 billion for one-year bonds.
A result well above the offer, considering that the Italian Treasury had put an amount of 4 and 7,5 billion respectively on the market. Meanwhile, the spread has risen to 372 basis points, after reaching a peak of 381 in the morning. The horror film also continues on the stock markets, overwhelmed this morning by yet another wave of sales. At mid-session, Piazza Affari was in the red by 3,4%.
