Italy 10-year bond yields rise back above 7% ( 10YR_ITA 10YR_ESP 10YR_FRA 10YR_BEL ) (by William L. Watts)

FRANKFURT (MarketWatch) -- Italian government bonds fell sharply Tuesday, pushing the yield on 10-year bonds (it:10yr_ita) back above the 7% level. The yield on 10-year bonds was last seen at 7.01%, up 43 basis points from Monday, according to FactSet Research. Yields rise as bond prices fall. The 7% level is seen as psychologically important, marking the point at which Portugal and Greece were effectively shut out of credit markets. The 10-year yield soared well above 7% last week amid political turmoil and a hike in margin requirements for bond traders before retreating. The yield on 10-year Spanish governemnt bonds (es:10yr_esp) rose 17 basis points to 6.25%, while France's 10-year yield (fr:10yr_fra) rose 15 basis points to 3.58% and Belgium's 10-year yield (be:10yr_bel) rose 19 basis points to 4.79%.