Los bonos Italianos caen.
EUROPE BUSINESS NEWSOCTOBER 31, 2011, 8:31 A.M. ET
Italian Bonds Fall Sharply
By NEELABH CHATURVEDI
LONDON—Italian government bonds buckled Monday, with five-year yields climbing to euro-era highs and the 10-year yield rising above the psychologically important 6% level as the post-European Union summit enthusiasm in risky assets fizzled out.
The five-year Italian bond yield rose 0.09 percentage point to 5.80%, the highest level since the inception of the common currency.
The 10-year yield increased by 0.08 percentage point to 6.06%, rising further from Friday when an Italian bond sale received feeble demand.
"The lack of detail accompanying the summit's grand plans is sorely limiting the scope for a more permanent shoring up of sentiment," interest rate strategists at Rabobank said.
The 6% mark on the 10-year note is crucial as selling in government bonds issued by other fiscally frail euro-zone countries exacerbated after breaching that level.
The Italian government-bond market is the third largest in the world and given the size of its economy, the firepower of the rescue fund will be severely tested should Italian sovereign debt prices continue to fall and funding becomes unsustainable.
Write to Neelabh Chaturvedi at
neelabh.chaturvedi@dowjones.com