Italian 10-year yields fall to 4.0%

<p>Have a look at the chart of Italian 10-year yields:</p><p>That is a massive wedge shaping up and we're now back testing the downside. The 17 bps drop today is part of a 41 bps drop in the past six trading days.</p><p>German bund yields are also down 10 bps today as the market may be sniffing out a sharp slowdown in the eurozone economy that will be compounded by another ECB rate hike on July 27.</p><p>The drop in Eurozone yields is a warning sign for euro bulls.</p>

This article was written by Adam Button at www.forexlive.com.