can someone explain Italy 10 Year bond importance

[Pippi436]

12 month gross yield on BBG shows +30.11%(yielding 8.46) for today. Is this for real or some sort of bad data?

http://www.bloomberg.com/apps/quote?ticker=GBOTG12M:IND

 

[Martinghoul]

Quote from Pippi436:
12 month gross yield on BBG shows +30.11%(yielding 8.46) for today. Is this for real or some sort of bad data?

http://www.bloomberg.com/apps/quote?ticker=GBOTG12M:IND

It's not too good data and things aren't quite as bad. 1y BOT is arnd 7.5 - 7.8% yield, roughly 160bps higher on the day.

 

[Ghost of Cutten]

Quote from Martinghoul:

Yep... There's no EMU w/o Italy.

Why would Italy leave the Euro? A country can default and still stay in a currency zone.

 

[timscott]

Does anyone think Italian bonds blow out hard & fast as those burned by Greece and a 50% haircut, with ineffectual CDS, GTFO?

That CDS deal makes debt buyers gunshy. "listen we want you to buy this house in a zone prone to fires. We'll sell you fire insurance, but you'll never get paid.