Perphery bond markets were not happy with Draghi’s comments but none moreso than his home country.
Ten-year Italian yields are now trading at 6.20% after falling as low as 5.75%. The daily chart now has a bullish engulfing candle and has confirmed the uptrend.
Draghi may think he has bought time but the clock will start ticking very quickly if the July highs give out.
Meanwhile, Spanish 10s are trading at a session high yield of 6.92% after falling as low as 6.61%.