Italy May Be Casualty of Crisis as Yields Rise, Evolution Says

Italy risks becoming a debt crisis casualty if bond yields remain at their current levels because annual interest costs will jump by more than $14 billion, according to Gary Jenkins at Evolution Securities Ltd.

Yields on Italy’s 10-year bonds yesterday exceeded 5 percent for the first time since 2008, threatening to add an extra 9.7 billion euros ($14.3 billion) to coupon payments, Jenkins, London-based head of fixed income at the brokerage, wrote in a note. The nation has more than 860 billion euros of notes maturing in the next five years, he wrote.