Cost of Italian borrowing shoots above 6pc
THE SHOCK decision by Greece to hold a referendum over whether to accept the eurozone debt plan pushed Italian sovereign borrowing rates up sharply today.
While German 10-year bond yields fell below 2pc, Italy’s rates shot up to 6.3pc – above the 6pc level considered bailout mode.
The cost of Irish borrowing, although Ireland is currently out of the open markets surviving on the €85bn bailout fund, also rose to over 8.4pc.
Yields on Spain, also seen as a potential next victim, rose to 5.56pc from 5.526pc yesterday.
Yields for AAA rated countries like Germany fell while benchmark yields for France also fell to 3.024pc from 3.094pc.
The spread between rates on Italian 10-year government bonds and benchmark German ones meanwhile widened to a new record of 437 basis points.