Looks like Mr. Market snuck one by us. Everyone was sure Spain would be the the next battle ground after Portugal but it turns out Italy is the target.
CDS are blasting wider in Europe with Italy leading the way, up 22% today to 295 bp.
Greece, who the FT say may default, finds there swaps only 5% more expensive today…Granted, they are at 2292 bp, already assuming a default. Italian markets are just getting started.
