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After a weekend of political wrangling and a change in leadership in Italy, its government bonds yields remain unsustainably high!
An Italian government 5-year auction today had relatively good demand (1.469 bid-to-cover ratio) and a lower yield than 5-year Italian government bonds were trading in the secondary market, but, the yield was still 6.29% for the 3 billion euro sale.
Given the fact that Italy will have to refinance 1.9 trillion euro however, this yield level is not an option going forward!
The current bond yields of Europe
For this interactive chart of European bond yields, click here.