MILAN (AP) — The spread between 10-year Italian and German bonds has reached a new record Monday as investors worry the country may become engulfed in Europe’s debt crisis.
The spread hit 285 points before easing back to 269 points by mid-afternoon. The interest rate on a 10-year Italian bond was 5.5 percent while the rate on the German equivalent, considered the safest in the eurozone, traded at 2.81 percent.
The Milan stock exchange fell despite a limit on short-selling set by the stock market regulator.
The FTSE MIB dropped 4 percent after the New York opening. Fiat Industrial, bank Intesa SanPaolo and Telecom Italian were among the worst performers.
As of Monday, all traders must reveal their short positions when they reach 0.2 percent or more of a company’s capital. The measure runs through Sept. 9.