We reminded our readers on Italy as one of the next possible themes on January 31st. A week ago, nobody really cared about Italy, but now the first investors are starting to get a bit uneasy. Italy is huge, especially their debt. The economy remains in full implosion mode.
Italian 10-year yield has been spiking violently over past days, reaching highest levels since early December. Note that we trade above the 200-day average again.
![](httpss://www.askbrokers.com/wp-content/uploads/2019/02/1-16.png)
MIB was the top performing index YTD in Europe only a few days ago, but the past days sell off has been rather intense. The MIB is once again falling below the 100-day average
![](httpss://www.askbrokers.com/wp-content/uploads/2019/02/2-14.png)
These days nobody talks about the BTP vs Bund spread, but they will start talking about it soon again. Note the sharp move higher. Hint, not great for Italy.
![](httpss://www.askbrokers.com/wp-content/uploads/2019/02/3-12.png)
We showed the below chart a few weeks ago. Italy has lost a decade. The question is will it lose another decade?
![](httpss://www.askbrokers.com/wp-content/uploads/2019/02/4-10.png)
Source; charts by Bloomberg