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Italian 10-year bonds reached all year record highs today

The Italian bond rates reached all year new highs since Italy joined Eurozone. Today, it raised to 6.67% and that creates a tremendous pressure to Italian budget to pay their loans. ECB intervention couldn’t help this skyrocketing move.

Due to investors’ worries about Italian debt the new rate reached almost 7% and as Reuters says it is unsustainable level for Italian budget. Investors are worried that Italy can become a second victim of the debt crisis in Eurozone.

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Will this new turmoil push the world markets down? We will have to wait for it. A few more days would reveal the next move. If more downside pressure occurs on SPY, that will be a great opportunity to short the market. In that case I will buy some puts on SPY.

Happy Trading!

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