Rising yields of ten-year Italian government bonds hit a decade high at 4.96%. Yields in other European countries also surged, with Germany at 2.98% and Spain over 4%. The Meloni government's plan to allow a deficit of 4.3% of the GDP in 2024, up from the initial 3.7% projection, has prompted these increases. The figures have been sent to Brussels for review. Furthermore, the widening yield spread between Italy and Germany is being closely monitored as an indicator of a potential upcoming debt crisis in Europe.

The spread between german and italian 10yy is about 200bps. During the last crisis 2011/2012 it reached 500bps. Keep an eye on those to know where we stand.