Italy – Mind the markets
Notes for sceptics
Italian 10 year government bonds approach 5%
This is >2% above German bonds for the first time since the euro launch in 1999 and the price of credit default swaps is fast rising for insuring Italian debt..
Italy must redeem €300 billion of public debt in the next year about €100 in first three months of 2011.
Italy’s public debt will hit 118.5% of GDP this year but this is funded largely in the domestic market.
Budget deficit is about 5% of GDP.