Italy May Be Forced to Take Bailout if Yields Continue Rising at Pace of Last Seven Days

Italy would probably be forced into receiving a bailout if it were to face another two weeks like the last seven days. The seven-year sovereign yield has increased to 589 basis points from 538 basis points a week ago. That figure can be used as a proxy for the level with which the average cost of debt will eventually converge, as long as the current maturity profile is maintained, because the average age of the nation’s bonds is seven years.

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