The bid on the 10-year is at 6.712% from 6.606% a few hours ago. The spread above German 10s is at 492 bps, not yet at the 496 pbs high.
A break over 7% in Italian 10s and all hell will break loose. There is an auction on Monday, which should be telling.
Talk of a 5% margin hike on Italian bonds at the LCH is not helping.
