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.

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

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.

We showed the below chart a few weeks ago. Italy has lost a decade. The question is will it lose another decade?

Source; charts by Bloomberg