The country of Hungary had its debt dropped to junk status today.
Italy’s 6 month bill sale was a disaster, following on the heels of Germany’s failure to sell its bonds. Italy had to pay over 7%, more than double what they have been paying. Their 10 year bond is now at 7.3%, well above the 7% that people were using as the benchmark of when to have serious worries about a country’s debt.
In fact, interest rates on government debt for almost every country is zooming up today (the price of the bonds is falling). Last person out the exit door loses.