For the first time since July 2007, Greece is no longer the ugliest PIIGS nation in Europe.

The last week has seen Italy sell 5.5 billion euros worth of 183-day bills at an average yield of 1.213% (the worst since Feb 2013) and Greece sell 1.625 billion euros worth of 183-day bills at an average yield of 0.85% (near its lowest since Oct 2009); meaning that Italian short-dated debt is perceived as more risky than Greece for the first time in almost 11 years...

European traders are noting that the front page of Italy's Corriere Della Sera is highlighting this historic moment for Italian risk...

Notably, Italy's next sale is scheduled for June 12 so prepare for more negative headlines if those yields stay elevated.