Euro Weighed Down by Widening Italian Bond Spreads; Systemic Risk
From dailyfx.com
Although the problems in Greece are far from resolved at this point, it seems as though market participants have shifted their focus elsewhere, with Italy now in the spotlight. The fear of contagion is becoming a major reality and with Italian bond yields widening to record levels, today’s parliamentary budget vote will be critical. Bond spreads in Italy have now widened out to levels which the UK Telegraph reminds could very well result in margin requirement adjustments, and this in turn would unleash a fresh wave of systemic risk. We therefore continue to project additional weakness in the Euro and other risk ...
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