The swirl around Italy's debt woes is likely to dominate markets Thursday, after the rapid rise in Italian borrowing costs sent risk assets cascading around the globe Wednesday, according to the good people at CNBC.
There are a few U.S. economic reports expected but nothing is likely to steal attention from the bubbling troubles in Europe that are sending warning signs through international financial markets. Weekly jobless claims are reported at 8:30 a.m. EST, as are international trade data and import prices. The Treasury auctions $16 billion in 30-year bonds at 1 p.m., an auction traders are watching closely after Wednesday's relatively cool reception for $24 billion 10-year notes.
Investors were initially cheered Tuesday by Prime Minister Silvio Berlusconi's promise to step down after a 2012 budget is approved. But the lack of movement Wednesday and his call for an election was a concern, as Italian interest rates continued to rise.
Italy's 10-year bond yield rose above 7 percent for the first time Wednesday to finish at 7.25. Seven percent is a red flag for markets that see it as unsustainable, and it is also the same level that led Ireland, Greece and Portugal to seek bailouts….
http://www.cnbc.com/id/45233128
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