Many view that any sustainable move into 6%+ is the beginning of the end for Italy and that 7% would signal terminal illness for not just Italy but the entire EZ experiment. The Italian 10yr has briefly breached 6% twice before (once in August, once in September), so this is something I view as critical to watching. You'll notice it just about kissed 5.99% this morning so we are very close.
In other news, Merkel is giving a speech right now to the Bundestag which I find unimpressive. In summation...Merkel calls for more responsibility from EURO states....leveraging the EFSF to be discussed tonight....EU treaties must be changed. It should be noted that the Bundestag will have to approve any major bailout so she is pandering to them.
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