This time, the epicentre is Italy - not Greece.

 ECB’s support for the sovereign bond market has always been conditional on consistency with its mandate of price stability. It was the threat of deflation in 2012, and during the pandemic, which gave the ECB the all-clear to provide the limitless support required to halt a panic.

Inflation in Europe is a game-changer, and markets know this. 

Sovereign spread targeting by a central bank has never been done before.

The ECB will need to provide answers in the next few weeks, or markets will draw their own conclusions.

Eric Lonergan FT 21 June 2022

https://www.ft.com/content/7cfb85d3-c77a-496f-9934-450f2314d311

We’re witnessing the start of the second euro crisis

https://englundmacro.blogspot.com/2022/06/were-witnessing-start-of-second-euro.html