Just when you thought it was all over... the PIIGS chaos rears its ugly head as political crises start to spread across the periphery. European stock markets are extremely mixed with the core relatively stable as the periphery plunges...

Italian bank stocks - so bloated with Italian sovereign debt - are accelerating lower.

Italian 2Y Yields are now at their highest since 2014.

The entire BTP curve flattens dramatically.

And Italian sovereign risk is exploding.

Which leaves us wondering...

Is MF Global long Italian 2Y again?

— zerohedge (@zerohedge) May 21, 2018

As if Italy was not enough, Spain is now under pressure as PM Rajoy is under pressure from a potential 'no confidence' vote and Spanish bond yields (and sovereign risk) are blowing out.

The widest spread to Germany in almost 6 months is shown in the chart below.

Which means only one thing... the PIIGS are coming back to life and there is little that Draghi can do this time.

And all of this is weighing on the euro.

And finally - here's the scariest chart of all - reflecting the reality of Italy's 'Mini-BoT' parallel currency concerns.

"Get back to work Mr. Draghi..."