Fasten your seatbelts..
A recent study by the Bank for International Settlementsshows Italian government debt represents nearly 20% of Italian banks’ assets — one of the highest levels in the world. In total there are ten banks with Italian sovereign-debt holdings that represent over 100% of their tier-1 capital (which is used to measure bank solvency), according to research by Eric Dor, the director of Economic Studies at IESEG School of Management.
Italian 10-year bond yields TMBMKIT-10Y, +4.60% marched higher, and the spread over German bonds of the same duration was at the highest level since 2014, according to The Wall Street Journal. Italian 10-year bonds reached 2.63%, while Spanish borrowing costs also rose Monday.
Italian stocks weigh down Europe as political worries fester - MarketWatch