Italy Faces More Turbulence Despite Planned Berlusconi Exit

Italy faced yet another day of volatility Wednesday despite the much-anticipated planned departure of Prime Minister Silvio Berlusconi, after yields on its debt were predicted to rise dramatically.

Italy's bond yields shot up to 7.502 percent, a new high since the euro was introduced in 1999. Investors were forced to sell Italian bonds after a European clearing house increased the collateral needed to borrow against that debt.
The 7 percent level was the point where European nations, including Ireland and Portugal, had to seek bailouts as their financing costs ballooned.
Italy has replaced Greece at the center of the euro zone debt crisis and is seen teetering on the cusp of requiring a bailout. A deal on forming a Greek national unity government collapsed while economic turmoil continued.