An Italian banking crisis and mark-to-market…

Italy's 10-year sovereign bond yield has risen from 1.78% at end of April and prior to the general election to 3.66%. That's the highest since the beginning of 2014 and the yield is still rising. Domestic banks and Italian life insurers are major holders of these bonds, with life insurers having a massive 47% of their assets under management in 2016 in Italian debt. That's a big problem if Italian yields stay elevated.

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