Yen extends its powerful rally in European session as the selloff in Italian bonds accelerate. Safe haven flow hammers German and US yields. The German-Italian spread has widened to the highest level since 2013.
Italian 10 year government bond yield jumps to as high as 3.244 so far today, and it’s currently up 0.577. It was as low as 2.386 yesterday and hit as low as 1.715 back in April. The steep acceleration shows markets are in deep worry about the political situation in Italy.
German 10 year bund yield, on the other hand, dropped to as low as 0.187 and is now down -0.095.
US 10 year yield also hit as low as 2.807 and is down -0.074.
Charts taken from MarketWatch.com
