Italy Bond Risk Soars To 3-Year Highs As Youth Unemployment Tops 40%

The last 4 months have seen something 'odd' happen in Europe's periphery. Sovereign 'risk' has conspicuously (and rationally) risen as macro-fundamentals have deteriorated - something that we have not seen since Draghi's 2012 "whatever it takes" moment.

For the first time since June 2015, Italian youth unemployment has risen above 40% and notably, Italian bond yields are rising...

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And the result is growing concerns about Italy's idiosyncratic risk as the risk premium of BTPs over Bunds soars to its highest sicne 2014 (worst now than the Referendum peak)...

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Time for moar "whatever it takes" - just ignore the transitory inflation surge and currency war warnings from Trump.