Italian government bond yields rose above 4% for the first time since 2014 and the cost of insuring its debt rose to the highest level since 2020, while bank shares fell on Monday, pressured by possible sharp interest rate hikes and waning support from the European Central Bank.
The yield on Italian 10-year bonds rose to 4.097 percent, the highest level since January 2014, and that pushed the spread between Italian 10-year bond yields and German bonds, a measure of financial stability in the eurozone, to the widest since May 2020.
The spread between Spanish and Portuguese bond yields and German debt also increased to the widest range since 2020, the Italian bank stock index fell 3.8% following losing a quarter of its value since the beginning of the year, and the shares of Intesa Sanpaolo and UniCredit, Italy’s two largest banks, fell 4.2% and 1.8% Respectively, the yield on German 10-year bonds rose to 1.634%, the highest level since April 2014, while the yield on two-year bonds jumped above 1% for the first time since August 2011.
(Archyde.com)
