Italy is now paying the same rates as Spain to finance their debt, says Emese Martha for The Wall Street Journal, as the Treasury paid an average yield of 3.702% on the 12-month T-bills, compared with 2.695% at the previous auction June 14. Portugal, Ireland and Greece’s credit ratings have all been downgraded to junk level. [Italy ETF Sells Off With Stocks, Bonds on Credit Fears.]
The Italian bond ETNs PowerShares DB 3x Italian Treasury Bond Futures (NYSEArca: ITLT) and the PowerShares DB Italian Treasury Bond Futures ETN (NYSEArca: ITLY) are trading lower as the government bond market in Italy is under serious stress.
Tisha Guerrero contributed to this article.