The Greek mess just to give up referendum, looking for the government reorganization plan and over, the debt crisis and the fire burned Italy, because Italian political instability, market increased concern, in recent days, the Italian 10-year yield rapid up, break through the cordon 7% yesterday.

Market analysts say, Treasury yields more than 7%, means that the country will be cost of financing, to the international help. Due to the Italian economy provides the scale in the third, accounting for 23% of the eurozone debt scale, if Italy steps behind Greece, to the eurozone countries and the international financial markets, will be a catastrophe.

The Greek prime minister says he will resign, a coalition government for the international aid, the European crisis fire and burn to Italy. The local time on Tuesday, the house of Commons Italy by 308 votes through the budget, but less than half of the votes they need means that berlusconi will face possible further pressure to resign. On Wednesday morning, the President of the Italian napoli skating history says, silvio berlusconi in the new budget will resign after approval.

The liquidation institutions to Italy

Treasury trading margin requirements

Although a new government may get more support in parliament, and promote more reform measures, but the uncertain prospects, market confidence not getting the support. The Italian government use of Treasury bonds to raise money costs are rising, the reason is the clearing house LCH. Clearnet announced yesterday that improve the margin requirements of Italian national debt transactions, and at the same time, the Italian Treasury yields have close to be considered unsustainable levels. By 19 yesterday, the 10-year yield debt soared 65 means within a basis points to 7.31%, as the euro since the advent of the high; Italy is two years 10-year yield sent down there, for the first time since the advent of the euro.

Treasury yields breakthrough 7%, means that the Italian through the market financing would be difficult way, after Greece, Portugal and Ireland bond yields in the breakthrough after 7%, then soared, financing becomes extremely difficult, finally had to seek international aid.

Or to the financial market disaster

And if the Italian appear similar crisis of Greece, for Europe, will be a disaster, other countries in the world will not escape negative impact.

At present, Italy has not yet expired national debt amount nearly 1.6 trillion euros, debt scale than Spain, Portugal, Ireland, Greece and their total debt. The oecd, according to figures released the eurozone debt accounted for Italy the proportion of total debt is as high as 23%, far more than the Greek 4%, above 4 countries for 17% of debt, also less than the level of Italy.

And the economic scale, Italy in Europe after France and Germany.

Market focus

European stability fund scale or be limited by meaning

Have the market rumors that the European central bank is continuing to buy Italian bonds, so as to reduce the Italian Treasury yields. But the European central bank's new governor, said Della had, the European central bank debt purchase plan will be "temporary measures", and at the same time buy debt scale is a "limited".

The international monetary fund's chairman and add on Tuesday also said the IMF will brief visit to Italy, and will be detail analysis.

But China merchants bank head office LiuDongLiang said senior analyst, Italy within a year of maturity in debt more than $4500, and the European financial stability fund plan in a four times as much leverage effect, scale expansion for one trillion euros, means that the actual capital size only 250 billion to 300 billion euros ($400 billion). If market confidence, private investors to escape, is an Italian can run out of the European financial stability fund, and the demand is not completely satisfied.

Analysts worry, Greece has started to gain debt through consultation reduced precedent, Italy and other eurozone countries also will appear orderly or breach of disorder. Market jitters will continue to last for months. Deutsche bank research department supervisor global interest rates Dominic Konstam have said that, if the euro zone to recession fears will lead to Italy and other parts of the country from 17 countries monetary union.



Other News:
Debt crisis to Italy
Fill in the outer ring INA bearing gap left by the advanced method
The application of overloading SKF bearing
FAG bearing content focused on enterprise in technology, management and technica
Germany import FAG bearing accuracy class
The European Union finance ministers meeting through the financial regulatory me
Italy budget vote on euro and test
Precision NSK bearing thin-walled pass the international authoritative institu