Italy's 10-Year Yields Have Recrossed 7% this morning.
Sterling is enjoying the show.
Notice the MOPE says the bond yields "edged" above 7%.
A nearly 5% rise in the 10 year yield of a major sovereign in a single say is not "edged". More like "exploded" or "gapped"
Italian bond yields edged back above 7pc on Tuesday, triggering steeper falls in stock markets and rekindling fears of an escalation in the eurozone debt crisis despite changes of governments in Italy and Greece.
The yield on 10-year Italian government bonds hit 7.039pc in the morning - a level widely seen as the point at which refinancing of the country's debt becomes unsustainable.
Borrowing costs of other debt-laden economies also rose with yields on Spanish and French 10-year bonds rising to 6.244pc and 3.557 respectively, in a further sign that troubles in the region are taking the toll on economies seen as vulnerable.
As investors headed for safety, the premium of French bonds over German Bunds hit their highest levels since the euro. The French/German 10-year government bond yield spread hit its widest level at 173 basis points, up 8 bps on the day.
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