Italian bond yields on Wednesday saw their biggest one-day rise since the launch of the euro amid fears that investors had lost confidence in the world’s third-biggest debt market.
In a sharp worsening of the eurozone crisis, Italian 10-year bond yields rose nearly three-quarters of a point to 7.48 per cent – a level considered unsustainable by many economists.
The Italian bond sell-off, which sparked a fall in the euro, European equities and bank stocks, was triggered by a move by clearing houses to increase the cost of margin payments for trading the country’s bonds.
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