Worry about Italy to blow up

- Interest rates on Italian government bonds run on Tuesday. The Italian state must pay investors 84 basis points for biennial debt, and 21 basis points for 10-year debt.

That is the highest position since 2014.

On Monday, the interest rates for Italy also rose after Sunday saw the formation of a government between the Five Star Movement and Lega. President Mattarella agreed to accept the very Eurosceptic candidate Paolo Savona of the parties as Minister of Finance.

Formateur Comte then submitted his order to form a government. Former IMF director Carlo Cottarelli is now trying to form a new cabinet.

That initially seemed to reassure the markets, but the 21 basis points extra for ten-year debt paper show that the market is very reluctant to help Italy financially.

By comparison, the German ten-year bund recorded 0.32% (-4 basis points), the Dutch ten-year government loan 0.46% (-3 basis points).

Also look at: