Downgrade Rumors

I've checked several sites from bonds to FX and confirmed that the chatter on the floor is that Italy is close to a downgrade, this may simply be the sewing circle, these rumors when unsubstantiated are pretty worthless, even with sources they tend to be pretty worthless, but they are enough for the time to send Italian yields much higher and in fact yields across the board in Europe higher.

On the other hand, if no coalition government can be formed today by Monti and remember the fierce resistance still coming from Berlusconi's ruling majority, which may be less one Silvio, but is still intact, may be where the resistance is coming from. If you read Sunday's post, you saw Berlusconi's threat to "Pull the plug".