• News Feeds
Page last updated at 09:49 GMT, Wednesday, 9 November 2011

Italian borrowing cost hits 'record high'

Advertisement

When you buy bonds - whether Italian or any other - you have to pay, in effect, a deposit.

Robert Peston explains how, as a result of demanding more cash for Italian bond deposits, the price of Italian government bonds as fallen leading to a rise in the implicit interest rate on debt.

That interest rate is above 6.70%, he explains, dangerously close the 7% that, in the case of Ireland, Portugal and Greece, led to the need for a rescue package.


Get in touch with Today via email , Twitter or Facebook or text us on 84844.

SEE ALSO

Story Tools

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific