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Despite newly announced bailout measures...markets continue to be skeptical about attempts to erect firewalls around some highly indebted nations...especially Italy...with its E1.9tn of debt...no growth...and slow walking of structural reforms promised by troubled PM Berlusconi.
Italy's cost for borrowing hit a record auction high...with Roma forced to pay 6.06% to borrow for 10 years...the most since the euro was created in 1999.
Its rate a month ago was 5.86%.
It only sold E7.9bn of a proposed E8.5bn/$12.1bn in 10 year benchmark bonds.
An interest rate of 6% or above is considered by economists to be unsustainable and dangerous.
