Have a look at the chart of Italian 10-year yields:
BPTs
That is a massive wedge shaping up and we're now back testing the downside. The 17 bps drop today is part of a 41 bps drop in the past six trading days.
German bund yields are also down 10 bps today as the market may be sniffing out a sharp slowdown in the eurozone economy that will be compounded by another ECB rate hike on July 27.
The drop in Eurozone yields is a warning sign for euro bulls.
