Indiana Grain Company, LLC

Posted: 11/07/11

By: tomgrisafi

Traders around the world are gearing up for what could be another busy day of monitoring Italian bonds.

The Italian 10-year yield reached a euro-era high of 6.7 percent Monday, as investors closely followed headlines about Prime Minister Silvio Berlusconi.

The world's third largest debtor nation has taken centerstage in the European sovereign debt crisis, as investors worry Berlusconi's government is not serious enough about reining in costs, CNBC reported late Monday.

"Berlusconi has to go. I think the market sees through it. You need leadership in these countries that's going to be able to enforce the austerity packages," said Steve Massocca, managing director at Wedbush in San Francisco.

Rick Klingman, who runs the Treasury trading desk at BNP in New York, was also watching the Italian bonds. "If you see 7 percent yields, (the U.S. 10-year) will probably be trading at 1.90...then I'd be afraid to be long our market because at 7 percent they're going to have to do something big," he said.

Source: CNBC

Be the first to comment on this blog!