The Eurozone needs to brace itself for another crash, this time it is Italy that is becoming more and more wobbly. The Age reports the following:
The Australian bond market opened firmer as traders moved to safe haven assets amid concerns the European sovereign debt crisis may spread to Italy.
At 0830 AEST on Monday, the June 10-year bond futures contract was trading at 94.700 (implying a yield of 5.300 per cent), up from 94.685 (5.315 per cent) on Friday.
The June three-year bond futures contract was at 95.020 (4.980 per cent), up from 94.970 (5.030 per cent).
Standard & Poor’s rating agency has downgraded its credit-rating outlook for Italy to negative from stable, citing its slowing economic growth and diminished prospects for a reduction of government debt.
Please read the whole thing. This is, however, the first report that I have seen on the financial situation in Italy. It is yet another country that has problems with a migrant population. At the present time Italy is coping with an influx of refugees from Tunisia and Libya. This is no doubt straining the government resources to a point where it is struggling with debt repayment.