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Horrific Italian bond auction today; Euro jitters remain

The Italian Treasury was unable to sell all bonds offered in today's auction.  The Treasury hoped to sell €8.5B of bonds, but could only sell a total of €7B across all maturities.  The yield on the €2.5B of 10yr bonds was 6.98%.  While the yield was lowered than last month's 7.56%, the result can only be considered horrific coming after the ECB's 3-yr liquidity facility of last week. 

The Italian economy shrank 0.2% in Q3, and most economists expect that Q4, when announced, will also be negative, marking Italy's fourth recessions since 2001. 

Negative for $FXE  and $SPY today.