Spread now reaches 335 bps
If you're trading the euro, this is something you have to pay attention to. It doesn't matter until it matters but now we're seeing it reach the point where it is starting to blow up and that will exacerbate fear in markets.
That is currently weighing the euro lower on the day as EUR/USD now falls from the highs to a session low of 1.1434.
The trigger point for Italian banks is 400 bps but we don't have to wait until it reaches there for a reaction. Any sharp move higher in the yields spread will prompt worries across European assets and right now, we're starting to see fear spread across the euro and bank stocks already.