With the Euro being pushed down to 11-month lows seen as mounting evidence of investors’ continued lack of confidence in the Eurozone leadership, today’s Italian sovereign debt auction is certain to bring market skepticism to a new low. Analysts had correctly predicted that the 5-year notes going on the auction block today would rise to a new Euro-era record high, with predictions well above 6%; in actuality, the yields rose to an unprecedented 6.74%. In November, Italy paid 6.3% on 5-year sovereign bonds, then, the highest price since the Euro came into existence in 1999. Read more
