By William L. Watts
FRANKFURT (MarketWatch) -- Italy's 10-year government bond yield edged above 7% again on Thursday, highlighting worries about the third-largest euro-zone economy's ability to meet its funding needs. The 10-year yield IT:10YR_ITA +0.27% rose 18 basis points to 7.01%, according to FactSet Research. Italy's yield curve inverted this week, a development widely viewed as a sign of distress in credit markets. Italy's five-year bond yield IT:5YR_ITA +0.28% rose 31 basis points to 7.38%. The euro EURUSD -0.10% edged lower versus the dollar to trade at $1.3327, down 0.2% from Wednesday.
