LONDON: The Italian/German 10-year bond yield gap hit its widest in over five years on Tuesday as euro zone officials warned of a return to crisis days and an Italian lawmaker said most of Italy's problems would be solved if it returned to its own currency.
As Italian bond yields surged 11-20 basis points, the yield premium investors demand to hold Italian debt over top-rated German peers also shot higher.
The Italian/German 10-year bond yield gap widened to 302 basis points, the widest level on that closely-watched spread in over five years .
The Italy/Spain 10-year bond yield spread was wider than any closing level in last 20 years at 190.5 basis points.
Spain's 10-year bond yield spread over Germany was at its widest in a month at around 112 basis points.
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