NEW YORK (CNNMoney) — Italian bond yields hit record highs Monday, getting perilously close to the 7% mark, as faith wanes in Prime Minister Silvio Berlusconi.
The yield for 10-year Italian bonds spiked to 6.5% Monday, easing back from earlier highs of 6.8%. Read more
Categories: Economics, United States
7% is considered a very high rate. italy has debt in excess of $300bn that needs to be rolled over in 2012. if rates stay at these elevated levels they will face other problems with their domestic budget. but the hope is that silvio will push through a few tough love measures that the citizenry will despise him for but allow the country to get back on the right course. at which point mr silvio out of PM role.