Italy reaches crisis point as bond yields soar

Announcement that Italian prime minister Silvio Berlusconi will resign does little to calm markets; bond yields hit euro area record high, raising the stakes for a potential default

Italian bond yields hit a eurozone record high on November 9, despite a pledge from Italy's prime minister Silvio Berlusconi to resign once the Italian parliament passed plans to implement fierce austerity measures, raising serious concerns over a possible default by the country.

The day before, Berlusconi had announced he would resign, after losing his absolute majority in a confidence vote in the lower houses of parliament. The Italian prime minister has faced increasing pressure from his