Italy led European exchange traded funds lower Wednesday as the country’s bond yields spiked above the key level of 7% amid talk the European Central Bank was intervening to stop the bleeding.
“This is a negative spiral in terms of Italian debt,” said Yves Maillot, head of investments at Robeco Gestions, in a Bloomberg report. “We already were in a perilous situation. The level of debt in Italy is a very, very big problem. In spite of the good news of changes in Italian leadership, the problem is deeper.”