FX.co ★ Italian bond yields rise despite Berlusconi's resignation

Italian bond yields remained high despite the fact that Berlusconi was replaced by economist Mario Monti, AFP says.
Thе yield, οr effective appeal rate, οn 10-year Italian bonds reached 6.39% on November 14, which is much lower than a record 7.5% last week, but still 1 percent point higher than in October.
November 14 Italy sold 5-year bonds for 3 bln euro. Their rate amounted to 6.29%. Usually short-term papers have lower yield.
It should be mentioned that euro fell against dollar by 0.3 cent to 1.367 after the auction. 14 November in the morning it rose by nearly 1 cent.
The problems with Italy’s debt became burning in late October – early November as investors were concerned that a part of Italy’s debt will have to be written off. As a result, 10-year bonds rate rose up to 7% and the gap between Italian and German bonds reached 5 percent points.
Under the pressure of possible full-scale financial crisis prime-minister Berlusconi agreed to resign, thus leaving his position to professional economist Mario Monti.