"Traders Have Difficulty Getting Prices": Italy Bond Massacre Blame Game

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Italian bonds are so volatile that traders are having difficulty getting pricing. Who will Italians blame?

There was a strong reaction in the 10-year Italian bond in response to President Mattarella’s blunder of forcing an IMF technocrat upon an unwilling parliament. ​

(Click on image to enlarge)

The above chart shows a move of about 77 basis points in the 10-year yield.

The yield on Italy's two-year bond yield (top chart) moved an amazing 240 basis points on the president's interference in the last election.

The word "massacre" seems insufficient to describe the carnage.

Things are so bad, traders are having difficulty getting pricing.

Placing the Blame

With Greece, it was easy for the EU nannycrats to place blame on Alexis Tsipras for his stance on exiting the Euro.

This is different. The Italian government coalition, although Eurosceptic, backed off an official exit stance.

Italian citizens can (and will) blame the EU/EMU and President Mattarella for cooperating with Brussels and the widely despised IMF.

For further discussion, please see Italy: "Whatever It Takes" Stage Two, President Mattarella’s Strategic Blunder.