Italian 10-Year vs German 10-Year Spread

Everyone is talking about it this morning, but this is what the chart looks like:

Believe it or not, the spread between 10-year yields in the "safer" German debt and the (beyond risky) Italian debt has widened by more than 100 bps just since last friday. Meanwhile, the S&P500, even with this morning's decline, is just slightly below its Thursday/Friday levels from last week. More on that later...

Source:

Italian Spreads Go "Hockey Stick" (Bespoke)