The Financial Times with a piece on how the European Central Bank finds itself under pressure to support Italian bonds.
- This week, Italy's 10-year government bond yield climbed above 2 per cent for the first time in a month, while the "spread" over German bonds - a closely watched measure of risk within the eurozone - widened to 2.6 percentage points.
- That is not far short of the peak of 2.8 percentage points during the March sell-off.
In March the ECB took action to stem the sell-off in the riskier end of of eurozone debt markets
- €750bn bond-buying plan
The gains have nearly evaporated though. The FT writes support is builidiong at the ECB to do more.
- Lagarde, ECB president, has made it clear that the central bank could go further if needed
- Even members of the ECB governing council who have criticised easing measures in the past now seem supportive.
Here is the link to the FT for more
