The yield on Italian 10-year bonds (BTP) was 3.7%. by Tuesday afternoon.
According to Credit Suisse, a 400-basis point spread between Italian and German bonds would signal that the Italian debt is not sustainable, Reuters reports.
Some Italian banks may be forced to seek recapitalization if the Italian bonds they hold in stock lose their value.
In the short term, it is feared that the declining value of government bonds, held by Italian lenders as reserve assets, will affec...
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