It would appear that investors in Italian assets have “more to fear that fear itself” as the mention of ‘mini-BoTs’ – and the implicit parallel currency nature of these short-dated IOUs – has spooked Italian banks, Italian bonds, and Italian credit risk dramatically…
2Y Yields are spiking…
10Y Yields are spiking…
Italian bond risk is spiking…
And perhaps most notable is that very short-dated CDS premia are exploding – signifying growing concerns that an Italian Euro is NOT worth the same as German Euro…
All of which is bettering Italian banks…
As Chuck Schumer would have said… “Get back to work Mr. Draghi…”
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