Both Italy and Spain are getting taken to the woodshed.

Italy's FTSE MIB index down over 4%.

When we originally posted this the index was off just 4.1 percent. Now it's off 4.9 percent.

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The yield on the 10-year Italian bond is up to 5.66%, and of course a whole bunch of Italian banks are being halted.

Spain's IBEX, meanwhile, is off over 2%. And the yield on its 10-year bond

This has been getting worse and worse all morning.