© Scanpix/AFP
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On Wednesday
the investors discarded Italian national bonds threating Italy to be locked out
of money markets and rising concerns on euro survival as European leaders are
still unprepared to tackle debt turmoil. 10-year bond rate spiked to 7.40% and
currently is trading at around 7.27% So far 7% yield was seen as critical point
for Ireland Portugal and Greece pushing them to ask aid from IMF. According to Stephen Pope
Spotlight Ideas managing director, when 7% rate is surpassed, the yield begins
to increase exponentially.