Concerns for Italy rising

While Italian government bond yields continue to decline, the equivalent credit default swap is heading the other way, a worrying sign says Riccardo Ronco, Head of Technical Analysis at Aviate Global in London.

This divergence suggests that although investors are being driven towards “safe” assets, concerns are increasing with regard to Italy’s sovereign risk.
 
See chart: Italy 5 year BTP government yield (orange line) vs Italy 5-year government CDS (white line)