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. ​

Image placeholder title

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.

Mike "Mish" Shedlock

Brexit Blame Game Coming Up: Who Gets the Blame (By Person and Country)?

No Deal Brexit is a near-certainty now. So, who will get the blame? The finger-pointing has already started.

Fed Still Struggles to Get a Grip on the Bond Market

Bond market volatility remains a sight to behold, even at the low end of the curve.

Italy Bond Yields Surge In Confrontation with ECB President Mario Draghi

Mario Draghi warns "Undermining EU budget rules carries high price for all". Italian bond yields surged.

Fed-Proof Bond Bet?

The yield curve is the flattest since 2007. Nonetheless, traders think it will get flatter. The bond bet du jour is the next Fed chair will keep hiking but not as much as the Fed thinks.

Bond Yields Surge in Italy Yet Complacency Still Abounds

Italy's Bond Yields Widest to Spain in Six Years

Producer Price Inflation Flat, Well Under Consensus, Bond Yields Tumble

Economists expected the Producer Price Index would jump in July. Instead, the PPI was flat and bond yields tumbled.

A recession is coming. Who will take the blame?

All booms end in recession. So who will accept the blame for the next one?

Import Prices Rise 0.4%, Exports 0.2%: Bond Yields Mostly Yawn

Those looking for a bit of inflation can point to import prices and a weak dollar, but the bond market barely reacted.

Grave Consequences: Italy Bond Yields Soar, Protests Called, Euro Referendum

Yields soared and Five Star has called for protests following Mattarella's decision to disallow a eurosceptic minister.