Credit Suisse: Italian and Spanish yields could climb above 9%

Credit Suisse has warned government bond markets could come under further pressure as the region tackles its worst ever crisis, sending yields on ten year Italian and Spanish bonds spiking above 9%.

In a research note sent out to clients yesterday the investment bank said the lack of political and fiscal unity in Europe has left the euro facing its "last days as we currently know it". The note, entitled ‘the last days of the euro', argues eurozone leaders must reach "a momentous deal" towards fiscal and political union by mid- January to save the 17-nation bloc. "We seem to have entered the last days of the euro as we currently know it," said Credit Suisse in the note. "This does not make a break-up very likely, but it does mean some extraordinary things will almost certainly ...