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Italy Attack Tests Euro Defenses

Rise in Italian bond yields calls into question Europe's ability to resolve crisis.

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The euro region’s defenses are being breached.

Investors yesterday propelled Italy’s 10-year bond yield to close at a euro-era high of 7.25 percent after the promised exit of Prime Minister Silvio Berlusconi failed to convince them that his country can slash Europe’s second-largest debt burden.

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