Italy bond yields jump, CDS spreads widen ( 10YR_ITA ) (by William L. Watts)
FRANKFURT (MarketWatch) -- Italian government bond yields jumped Tuesday and the cost of insuring Italian and other European sovereign debt against default rose a day after Greek Prime Minister George Papandreou unexpectdly called a referendum on the Greece's latest bailout plan. The yield on 10-year Italian government bonds (10yr_ita) jumped 20 basis points to 6.18%, according to FactSet Research data. Yields rise as bond prices fall. Meanwhile, the spread on five-year Italian credit default swaps, or CDS, widened 52 basis points to trade at 495 basis points, according to data provider Markit. That means it would cost $495,000 annually to insure $10 million of Italian debt for five years, up from $443,000 on Monday.