The last 4 months have seen something 'odd' happen in Europe's periphery. Sovereign 'risk' has conspicuously (and rationally) risen as macro-fundamentals have deteriorated - something that we have not seen since Draghi's 2012 "whatever it takes" moment.

For the first time since June 2015, Italian youth unemployment has risen above 40% and notably, Italian bond yields are rising...

And the result is growing concerns about Italy's idiosyncratic risk as the risk premium of BTPs over Bunds soars to its highest sicne 2014 (worst now than the Referendum peak)...

Time for moar "whatever it takes" - just ignore the transitory inflation surge and currency war warnings from Trump.