Italy on edge as 10 year yields breaks 7%

© Scanpix/AFP

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.