Italy to issue EUR 440 bln in debt in 2012
What could possibly go wrong?
Italy’s debt has an average maturity of seven years. The coupon on the present 7-year BTP is 4.5%. The yield today is close to 7%. In other words, it is gonna cost Italy a huge chunk of change to rollover their outstanding debt. That is the source of the crisis; the added cost to the government Treasury from the higher cost of funds.