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.