10-year bond yields trade near 4-year highs at the start of the day
Yields have jumped higher across the curve with 10-year yields up 8 bps to start trading today. The high posted this year was 3.43% and currently yields sit at 3.38%, just shy of that. But should we get to those levels, the last time yields traded at current levels was back in 2014.
Borghi's comments of solving fiscal problems via Italy's own currency and suggesting that the deficit could go up to 3.1% has so far been enough to spark fears in the bond market once again.
And this continues to weigh on the euro as well with the single currency matching losses seen in the aussie and kiwi as a result of the risk off mood in markets. Expect the rhetoric here to carry on for quite a bit this month and that will surely add a dose of headline volatility in the euro that we haven't been accustomed to for quite a while.
